Besancenot, Damien; Vranceanu, Radu - HAL - 2011
Many observers argue that the abnormal accumulation of risk by banks has been one of the major causes of the 2007-2009 Â…nancial turmoil. But what could have pushed banks to engage in such a risk race? The answer brought by this paper builds on the classical signaling model by Spence. If banks'...