Title:Deposit Insurance and Risk Taking
Author(s):ALLEN, Franklin; CARLETTI, Elena; LEONELLO, AgneseDate:2011Type of Publication:ArticleAbstract:We review the theory of deposit insurance, highlighting the underlying assumptions that were not satisfied during the recent financial crisis and that may have led to serious policy mistakes. In theoretical models, deposit ...
Title:Deposit Insurance without Commitment: Wall St. versus Main St.
Author(s):COOPER, Russell; KEMPF, HubertDate:2011-01-01Type of Publication:Working PaperSeries/Report no.:EUI ECOAbstract:This paper studies the provision of deposit insurance without commitment in an economy with heterogenous households. When households are identical, deposit insurance will be provided ex post to reap insurance gains. But ...
Title:Deposits and bank capital structure
Author(s):ALLEN, Franklin; CARLETTI, ElenaDate:2013Type of Publication:Working PaperSeries/Report no.:EUI ECOAbstract:In a model with bankruptcy costs and segmented deposit and equity markets, we endogenize the choice of bank and firm capital structure and the cost of equity and deposit finance. Despite risk neutrality, equity capital is ...
Title:Designing Non-Parametric Estimates and Tests for Means
Author(s):SCHLAG, Karl H.Date:2006Type of Publication:Working PaperSeries/Report no.:EUI ECOAbstract:We show how to derive nonparametric estimates from results for Bernoulli distributions, provided the means are the only parameters of interest. The only information
is that the support of each random variable is contained ...
Title:Detecting Propagation Effects by Observing Aggregate Distributions: The Case of Lumpy Investments
Author(s):GUISO, Luigi; LAI, Chaoqun; NIREI, MakotoDate:2011-01-01Type of Publication:Working PaperSeries/Report no.:EUI ECOAbstract:By using an extensive panel data set of Italian firms, we show empirically that the fraction of firms that engage in a lumpy investment follows a non-normal, double-exponential distribution across region-year. We propose ...
Title:The Determinants of Attitudes towards Strategic Default on Mortgages
Author(s):GUISO, Luigi; SAPIENZA, Paola; ZINGALES, LuigiDate:2010Type of Publication:Working PaperSeries/Report no.:EUI ECOAbstract:We use survey data to study American households’ propensity to default when the value of their
mortgage exceeds the value of their house even if they can afford to pay their mortgage (strategic
default). The cost of ...
Title:DGSE Model Evaluation and Hybrid Models: A Comparison
Author(s):PACCAGNINI, AlessiaDate:2011-01-01Type of Publication:Working PaperSeries/Report no.:EUI MWPAbstract:This paper discusses the estimation of Dynamic Stochastic General Equilibrium (DSGE) models using hybrid models. These econometric tools provide the combination of an atheoretical statistical representation and the theoretical ...
Title:Disaggregated Wage Curves in the United States: Evidence From Panel Data of Young Workers
Author(s):TURUNEN, JarkkoDate:1998Type of Publication:ArticleAbstract:The paper presents wage curve results disaggregated over time, by individual characteristics, occupations, industries and regions in the United States, using a panel data set of young workers. The results suggest that ...