This paper discusses the relationship between premia for macroeconomic risk in banking, aggregate behavior, and banking crises. We consider a competitive banking system embedded in an overlapping generation model subject to repeated macroeconomic shocks. We highlight how risk premia decline when...

This paper studies the question to what extent premia for macroeconomic risks in banking are sufficient to avoid banking crises. We investigate a competitive banking system embedded in an overlapping generation model subject to repeated macroeconomic shocks. We show that even if banks fully...

We explore the impact of sophistication in risk management as required by Basel II on banking stability and market conditions. We compare a competitive banking system in which only average ratings are available with a competitive system in which banks are able to assess the default risk of...

We investigate the question of whether sophistication in risk management fosters banking stability. We compare a simple banking system in which an average rating is used with a sophisticated banking system in which banks are able to assess the default risk of entrepreneurs individually. Both...

This paper provides a macroeconomic perspective for government interventions in banking crises. We illustrate how vulnerabilities of the banking sector may build up over time and thus destabilize a banking system. A crisis occurs when a large number of banks fail to meet capital requirements or...

This dissertation explores technical regulations (sanitary and phytosanitary (SPS) measures, technical barriers to trade, and geographical indications) in Central American agricultural and food trade. In the first part, a framework to systematically evaluate the broad issues for developing...

Chapter 2 deals with a linear city model à la Hotelling where the two firms share linear transport costs with their customers. Mill pricing and uniform delivery pricing are special limiting cases. We characterize the conditions for the existence of a pure strategy equilibrium in the two-stage...

This collection of papers originates from myinterest in the reform efforts in transitionaleconomies. Each of the chapters is self-contained.Chapter one presents a brief literature surveyof those schools of thought that have contributedto our knowledge about privatization.In chapter two, a public...

The Industrial Organization literature investigates the product market decisions of a firm while the corporate finance literature explores the financing decisions of the firm. But the truth is both the financing decisions and the product market decisions are interdependent and should be modeled...