Hilmer, Michael - Max-Planck-Institut für Steuerrecht und öffentliche … - 2014
failure, an anticipated bailout induces the bank to tolerate short-termist behavior more often. In addition, existing … excessive short-termism increases further in the anticipated bailout payment, while compensation shifts from long-term towards … bailout. Consequently, our model offers a rationale for such a tax when banks anticipate bailouts and adjust their …