Substitution elasticities quantify the extent to which the demand for inputs responds to changes in input prices. They are considered particularly relevant from the perspective of cost management. Because the crisis has drastically altered the economic environment in which banks operate, we...

This paper investigates the long-run recovery experience of U.S. banks that received capital infusions under the Capital Purchase Program (CPP), a part of the Troubled Asset Relief Program (TARP). Based on a dynamic recovery model, our results show that recovering CPP banks tended to be in...