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Who Invests in Home Equity to Exempt Wealth from Bankruptcy?
Corradin, Stefano - 2011
Homestead exemptions to personal bankruptcy allow households to retain their home equity up to a limit determined at … the state level. Households that may experience bankruptcy thus have an incentive to bias their portfolios towards home … bankruptcy on account of unpaid medical bills. The bias is further stronger for households with mortgage finance, shorter house …
Persistent link: https://www.econbiz.de/10013126001
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Market based compensation, price informativeness and short-term trading
Calcagno, Riccardo; Heider, Florian - 2007
This paper shows that there is a natural trade-off when designing market based executive compensation. The benefit of market based pay is that the stock price aggregates speculators’ dispersed information and there-fore takes a picture of managerial performance before the long-term value of a...
Persistent link: https://www.econbiz.de/10011604781
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Who invests in home equity to exempt wealth from bankruptcy?
Corradin, Stefano; Gropp, Reint E.; Huizinga, Harry; … - 2011
Homestead exemptions to personal bankruptcy allow households to retain their home equity up to a limit determined at … the state level. Households that may experience bankruptcy thus have an incentive to bias their portfolios towards home … bankruptcy on account of unpaid medical bills. The bias is further stronger for households with mortgage finance, shorter house …
Persistent link: https://www.econbiz.de/10011605383
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The distribution of debt across euro area countries: the role of individual characteristics, institutions and credit conditions
Bover, Olympia; Casado, Jose Maria; Costa, Sonia; Du … - 2014
The aim of this paper is twofold. First, we present an up-to-date assessment of the differences across euro area countries in the distributions of various measures of debt conditional on household characteristics. We consider three different outcomes: the probability of holding debt, the amount...
Persistent link: https://www.econbiz.de/10011605684
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Reserve Accumulation, Inflation and Moral Hazard : Evidence from a Natural Experiment
Chitu, Livia - 2016
This paper assesses whether international reserve accumulation can be inflationary because of moral hazard and incentive effects. It tests the hypothesis that an increase in international reserves may incentivise countries to become complacent and pursue less prudent policies due to the...
Persistent link: https://www.econbiz.de/10012999424
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The Impact of Public Guarantees on Bank Risk Taking : Evidence from a Natural Experiment
Gropp, Reint - 2014
In 2001, government guarantees for savings banks in Germany were removed following a law suit. We use this natural experiment to examine the effect of government guarantees on bank risk taking, using a large data set of matched bank/borrower information. The results suggest that banks whose...
Persistent link: https://www.econbiz.de/10013068968
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A Minimal Moral Hazard Central Stabilisation Capacity for the EMU Based on World Trade
Beetsma, Roel - 2018
Recent debate has focused on the introduction of a central stabilisation capacity as a completing element of the Economic and Monetary Union. Its main objective would be to contribute cushioning country-specific economic shocks, especially when national fiscal stabilisers are run down. There are...
Persistent link: https://www.econbiz.de/10012923313
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Risk-Sharing or Risk-Taking? Counterparty Risk, Incentives and Margins
Biais, Bruno - 2012
We analyze optimal hedging contracts and show that although hedging aims at sharing risk, it can lead to more risk-taking. News implying that a hedge is likely to be loss-making undermines the risk-prevention incentives of the protection seller. This incentive problem limits the capacity to...
Persistent link: https://www.econbiz.de/10013113017
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Has Regulatory Capital Made Banks Safer? Skin in the Game vs Moral Hazard
Dautović, Ernest - 2020
The paper evaluates the impact of a phased-in introduction of capital requirements on equity, risk-taking, and probability of default for a sample of European systemically important banks. Contrary to the case of a one-off introduction of capital requirements, this study does not fi nd evidence...
Persistent link: https://www.econbiz.de/10012850186
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Has Regulatory Capital Made Banks Safer? Skin in the Game vs Moral Hazard
Dautović, Ernest - 2020
The paper evaluates the impact of a phased-in introduction of capital requirements on equity, risk-taking, and probability of default for a sample of European systemically important banks. Contrary to the case of a one-off introduction of capital requirements, this study does not find evidence...
Persistent link: https://www.econbiz.de/10012827421