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>

In a "Hayekian world," the market is a competitive exchange network that continuously solves a coordination problem. In this competitive context, expectations are endogenous, so planned actions are assumed to be mostly realizable. Nevertheless, economic crises are possible: not even...

Modelling and testing whether competitive pressures driven by deregulatory changes make markets more competitive are examined. Departures from competitive markets are modelled via mark-up prices. Empirically, a panel data is used on Spanish savings banking industry that is undergoing...

Recent cross-country comparisons of bank efficiency have been based on pooled estimates of banks across countries and have typically assumed a common frontier and that differences in performance among banks are primarily due to disparities in certain country-specific aspects of banking...

This paper presents a model whereby banking firms use various strategies (price and non-price) simultaneously in a monopolistically competitive model of spatial competition when the various strategies are used across different markets in the presence of a multioutput technology. The theoretical...

This study analyses the impact of OBS on banking productivity growth using a sample of 712 banks from 84 countries between 1999 and 2006. Our international setting allows us to analyse differences on the performance on banking institutions among various groups of countries with different...

Purpose - The paper attempts to analyze vertical product differentiation as a strategy pursued by European banks seeking greater market power and higher reputation for quality, and to examine whether this entails losses in banking efficiency. Design/methodology/approach -First, the empirical...