Much recent academic attention has focused on the relative ability of markets and bank supervisors to assess the risk of depository institutions. We add to that literature by comparing the factors influencing bank holding company risk, as gauged by equity markets, with the factors influencing...

The Federal Deposit Insurance Corporation Improvement Act of 1991 (FDICIA) forced uninsured creditors such as jumbo-CD holders to bear more of the losses from bank failures. Because no other federal laws affecting loss exposure took effect in the surrounding years, the Act offers a natural...

We examine the latitude that regulators provide to banks in how they manage loan loss allowances. Empirical tests on subsamples of 64,807 annual observations of banks, 2006 to 2015, show that correlations of provisions for loan losses and subsequent charge-offs, which are expected under...

The elasticity of substitution between capital and labor features prominently in several areas of economic research. However, a consensus estimate remains elusive. We develop an estimation strategy that filters panel data in an original way and avoids several pitfalls - difficult-to-specify...

The sensitivity of business capital formation to its user cost plays a key role in the analysis of many economic issues. Although this elasticity has been the subject of an enormous number of studies, a consensus remains elusive. We develop an estimation strategy that exploits panel data in an...