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inadequate regulation leads to imbalances between profits and liability, as private gains are accompanied by social costs … stärker von Anlagen auf den Finanzmärkten. Deren Regulierung sollte sich auf eine bessere Gläubigerhaftung, die Vermeidung von … market regulation is mainly described as an issue of social sustainability. This classification is appropriate because …
Persistent link: https://www.econbiz.de/10011818694
The paper shows that an IMF-like coinsurance arrangement among countries can play a useful role in the global financial system. The operation of the coinsurance arrangement is examined under different loan contracts. It shows that, if the IMF?s objective is to safeguard its resources and be...
Persistent link: https://www.econbiz.de/10010295311
Government provision of a financial safety net for financial institutions has been a key element of the policy response to the current crisis, with governments extending existing guarantees and introducing new ones. These measures have been helpful in avoiding a further accelerated loss of...
Persistent link: https://www.econbiz.de/10010298638
The paper argues that a comprehensive activation strategy is called for - in both unemployment and disability insurance - to minimize the conflict between income insurance and work incentives and to prevent the economic crisis from causing a long-lasting decline in labor force participation. A...
Persistent link: https://www.econbiz.de/10010331989
The theory of incentives and matching theory can complement each other. In particular, matching theory can be a tool …
Persistent link: https://www.econbiz.de/10014496097
Persistent link: https://www.econbiz.de/10011385111
We propose a theory of free movement of goods and labor between two economies in the presence of moral hazard. Each …
Persistent link: https://www.econbiz.de/10011586051
The paper studies a model of delegated search. The distribution of search revenues is unknown to the principal and has to be elicited from the agent in order to design the optimal search policy. At the same time, the search process is unobservable, requiring search to be self-enforcing. The two...
Persistent link: https://www.econbiz.de/10011599569
We analyze the determinants of real estate and credit bubbles using a unique borrower-lender matched dataset on mortgage loans in Spain. The dataset contain real estate credit and price conditions (loan principal and spread, and the appraisal and market price) at the mortgage level, matched with...
Persistent link: https://www.econbiz.de/10011650287
We examine the relationship between the small business loan guarantee and the agency problem of small firms. We then recommend financial instruments or financial contracts that can minimize of eliminate the moral hazard problem.
Persistent link: https://www.econbiz.de/10011310373