[fre] Ce papier examine les différents thèmes en management du risque qui se trouvent mis au devant de la scène par la crise des « subprimes ». Les institutions financières doivent réfléchir aux améliorations de leur gouvernance du risque non seulement dans ses aspects techniques, mais...

We model the link between inequality and excessive risk taking. In the presence of increasing returns to tax avoidance, the middle class is willing to take non rewarded financial risk despite risk aversion. Electoral pressure may lead an incumbent politician to endorse this excessive risk taking...

We present a model in which fire sales propagate shocks across bank balance sheets. When a bank experiences a negative shock to its equity, a natural way to return to target leverage is to sell assets. If potential buyers are limited, then asset sales depress prices, in which case one bank׳s...

The socially conscious citizen worries that globalization seems to grind social standards ever lower. Workers earn less, the environment suffers, health care declines. Investing for Change shows that socially conscious citizens can change the globalized world in the direction of many common...

International Macroeconomics has long sought an explanation for current account fluctuations that matches the data. The approaches have typically focused on better models and new macroeconomic variables. We demonstrate the limitations of this approach by showing that idiosyncratic shocks are an...

This paper reviews the theoretical and empirical literature on executive compensation. We start by presenting data on the level of CEO and other top executive pay over time and across firms, the changing composition of pay; and the strength of executive incentives. We compare pay in U.S. public...

Economics