stylized facts. In this paper, the similarities and differences which may emerge when the time to build structure of capital is … investigated and, more importantly, it is shown that the predictions in terms of capital, output, and consumption behavior are not …

psychological concepts of cognitive dissonance and terror management theory into our economic analysis, we demonstrate why … – although predicted by standard economic theory – defection is a phenomenon rarely observed. We finally present some policy …

In this paper, we argue for a regulatory framework under which a bank’s required level of equity capital depends on the … equity capital of its peers. Such bankingon- the-average rules are transparent and could also be combined with the current … abstain from gambling. Moreover, it alleviates socially harmful consequences of conventional equity-capital rules, which may …