This paper analyzes whether risk shifting took place in the European Union’s banking sector in 2002–2009. We also identify the type of risk shifting, if any, in the sample. In addition, our method provides a way to determine which variables incentivize/disincentivize risk shifting. Our main...

This paper contributes to the empirical literature on risk shifting. It proposes a method to find out whether risk shifting is present in the banking industry and, if so, what type. The type of risk shifting depends on the group of debt holders to whom risk is shifted. We apply this method to...

type="main" xml:id="sjpe12037-abs-0001" <title type="main">Abstract</title> <p>This study discusses informal hiring in terms of a standard principal–agent model. We have developed an adverse selection model of the labour market where effort is not contractible and employers have the opportunity to use informal search...</p>