Title:An Overview of the Crisis: Causes, Consequences and Solutions
Author(s):ALLEN, Franklin; CARLETTI, ElenaDate:2009Type of Publication:ArticleAbstract:What caused the crisis? Initially many thought that it was due to incentive problems in the U.S. mortgage industry. However, after the large economic meltdown following Lehman Brothers' bankruptcy in September 2008, it ...
Title:Stakeholder Capitalism, Corporate Governance and Firm Value
Author(s):ALLEN, Franklin; CARLETTI, Elena; MARQUEZ, RobertDate:2009Type of Publication:Working PaperSeries/Report no.:EUI ECOAbstract:In countries such as Germany, the legal system is such that firms are necessarily stakeholder oriented. In others like Japan social convention achieves a similar effect. We analyze the advantages and disadvantages of ...
Title:Interbank Market Liquidity and Central Bank Intervention
Author(s):ALLEN, Franklin; CARLETTI, Elena; GALE, DouglasDate:2009Type of Publication:Working PaperSeries/Report no.:EUI ECOAbstract:We develop a simple model of the interbank market where banks trade a long term, safe asset. We show that when there is a lack of opportunities for banks to hedge aggregate and idiosyncratic liquidity shocks, the interbank ...
Title:Credit Market Competition and Capital Regulation
Author(s):ALLEN, Franklin; CARLETTI, Elena; MARQUEZ, RobertDate:2009Type of Publication:Working PaperSeries/Report no.:EUI ECOAbstract:It is commonly believed that equity finance for banks is more costly than deposits. This suggests that banks should economize on the use of equity and regulatory constraints on capital should be binding. Empirical evidence ...
Title:Mark-to-market Accounting and Liquidity Pricing
Author(s):CARLETTI, Elena; ALLEN, FranklinDate:2008Type of Publication:ArticleAbstract:When liquidity plays an important role as in financial crises, asset prices may reflect the amount of liquidity available rather than the asset's future earning power. Using market prices to assess financial institutions’ ...
