Auflistung LIF-SAFE Working Papers nach Titel
Anzeige der Dokumente 27-46 von 334
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Back to the Future: A Sovereign Debt Standstill Mechanism IMF Article VIII, Section 2 (b)
(2020-06-22)This article provides a proposal to use IMF Article VIII, Section 2 (b) to establish a binding mechanism on private creditors for a sovereign debt standstill. The proposal builds on the original idea by Whitney Deveboise ... -
Bank and Sovereign Debt Risk Connection
(2013-01-01)Euro area data show a positive connection between sovereign and bank risk, which increases with banks’ and sovereign long run fragility. We build a macro model with banks subject to moral hazard and liquidity risk (sudden ... -
Bank Networks: Contagion, Systemic Risk and Prudential Policy
(2015-07-01)We present a network model of the interbank market in which optimizing risk averse banks lend to each other and invest in non-liquid assets. Market clearing takes place through a tâtonnement process which yields the ... -
Bank Rescues and Bailout Expectations: The Erosion of Market Discipline During the Financial Crisis
(2016-10-01)We design a novel test for changes in market discipline based on the relation between firm-specific risk, credit spreads, and equity returns. We use our method to analyze the evolution of bailout expectations during the ... -
Bank Response To Higher Capital Requirements: Evidence From A Quasi-Natural Experiment
(2016-12-07)We study the impact of higher capital requirements on banks’ balance sheets and its transmission to the real economy. The 2011 EBA capital exercise is an almost ideal quasi-natural experiment to identify this impact with ... -
Banking Union and the Governance of Credit Institutions - A Legal Perspective
(2015-04-08)The creation of the Banking Union is likely to come with substantial implications for the governance of Eurozone banks. The European Central Bank, in its capacity as supervisory authority for systemically important banks, ... -
Banks’ financial distress, lending supply and consumption expenditure
(2014-02-01)We employ a unique identification strategy linking survey data on household consumption expenditure to bank-level data to estimate the effects of bank financial distress on consumer credit and consumption expenditures. We ... -
Bargaining with a Bank
(2018-01-01)This paper examines bargaining as a mechanism to resolve information problems. To guide the analysis, I develop a parsimonious model of a credit negotiation between a bank and firms with varying levels of impatience. In ... -
Belief Formation and Belief Updating under Ambiguity: Evidence from Experiments
(2019-09-21)Decisions under ambiguity depend on both the belief regarding possible scenarios and the attitude towards ambiguity. This paper exclusively focuses on beliefs, measured independent from attitudes. We use laboratory experiments ... -
Biases in Information Selection and Processing: Survey Evidence from the Pandemic
(2021-02-10)How people form beliefs is crucial for understanding decision-making un- der uncertainty. This is particularly true in a situation such as a pandemic, where beliefs will affect behaviors that impact public health as well ... -
Buildings' Energy Efficiency and the Probability of Mortgage Default: The Dutch Case
(2020-03-01)We investigate the relation between buildings’ energy efficiency and the probability of mortgage default. To this end, we construct a novel panel dataset by combining Dutch loan-level mortgage information with provisional ... -
Call of duty: Designated market maker participation in call auctions
(2021-08-21)Many equity markets combine continuous trading and call auctions. Oftentimes designated market makers (DMMs) supply additional liquidity. Whereas prior research has focused on their role in continuous trading, we provide ... -
Can Firms see into the Future? Survey evidence from Germany
(2017-11-03)This paper presents new evidence on the expectation formation process of firms from a survey of the German manufacturing sector. It focuses on the expectation about their future business conditions, which enters the widely ... -
Can Households See into the Future? Survey Evidence from the Netherlands
(2018-07-14)This paper presents new evidence on the expectation formation process from a Dutch household survey. Households become too optimistic about their future income after their income has improved, consistent with the ... -
Central Bank-Driven Mispricing
(2018-10-01)We show that bond purchases undertaken in the context of quantitative easing efforts by the European Central Bank created a large mispricing between the market for German and Italian government bonds and their respective ... -
Circuit Breakers – A Survey among International Trading Venues
(2018-02-08)Circuit Breakers are widely implemented in 2016. Currently, the majority (86%) of the responding trading venues use circuit breakers to ensure investor protection and to increase market integrity and stability. Compared ... -
Client Involvement in Expert Advice: Antibiotics in Finance?
(2018-07-23)We use minutes from 17,000 financial advisory sessions and corresponding client portfolio data to study how client involvement affects advisor recommendations and portfolio outcomes. We find that advisors confronted with ... -
Cognition, Optimism and the Formation of Age-Dependent Survival Beliefs
(2018-06-02)This paper investigates the roles psychological biases play in deviations between subjective survival beliefs (SSBs) and objective survival probabilities (OSPs). We model deviations between SSBs and OSPs through age-dependent ... -
Coinvestment and risk taking in private equity funds
(2016-01-01)Private equity fund managers are typically required to invest their own money alongside the fund. We examine how this coinvestment affects the acquisition strategy of leveraged buyout funds. In a simple model, where the ... -
Collateral Eligibility of Corporate Debt in the Eurosystem
(2020-04-01)We study how the Eurosystem Collateral Framework for corporate bonds helps the European Central Bank (ECB) fulfill its policy mandate. Using the ECBs eligibility list, we identify the first inclusion date of both bonds and ...