Traditionally banks have used securitization for expanding credit and thus their profitability. It has been well …-rated tranche. This paper builds a simple model of securitization that accounts for the above retention strategies. Banks in the … documented that, at least before the 2008 crisis, many banks were keeping a high proportion of the securities that they created …

How does uncertainty affect the costs of raising finance in the bond market and via bank loans? Empirically, this paper … finds that heightened uncertainty is accompanied by an increase in corporate bond yields and a decrease in bank lending … for banks. To reduce uncertainty, banks acquire additional costly information about borrowers. More information increases …

An entrepreneur chooses a relationship bank or market finance. The advantage of bank finance is that the quality of the … that the bank continues inefficient projects, i.e., zombie lending occurs. In the short run - for a given contract - a drop … in the market interest rate increases zombification. The bank adapts the contract to this drop in the long run, and …

. Third, equilibrium collateral requirements may be inefficiently high …

In this paper, we study regulation of externalities involving many small-scale polluters, where the damages from … such regulations should be designed and combined. We find that the optimal regulation design crucially depends on the type … technology regulation encourages cleaner technologies in high damage areas, but discourages their use in low damage areas …

commentators have focused on the anticompetitive potential of envelopment, and some have argued for regulation of platforms because … of that concern. These calls for regulation are not supported by robust formal analysis or comprehensive empirical …

assess the effectiveness and efficiency of these standards, which are the centerpiece of US Clean Air Act regulation of …