In this paper, we introduce a model to study the interaction between insurance and banking. We build on the Federal Crop Insurance Act of 1980, which significantly expanded and restructured the decades-old federal crop insurance program and adverse weather shocks - over-exposure of crops to heat...

We examine the information flow between the equity and credit default swap (CDS) markets using firm level returns data before and after the Global Financial Crisis (GFC). Prior to the crisis, the information flow is unidirectional with equity returns leading CDS returns. While equity returns...