Acharya, Viral V. (contributor) - 2002 - [Elektronische Ressource]
closure policy can be explicitly con-
tingent on the investment decisions of the bank, i.e., the regulator designs regulation …-sum constant
V must equal the continuation value of bank owners for an investment policy (XS,XR) in
each period and is given by
V … claims for an investment policy
XR in each period is
W(XR,K) = w(XR)1−β +β(1−p)integraltextRc
0 h(R)dR
. (4.12)
Note that the …