Should central banks be in charge of micro-prudential as well as of macro-prudential supervision? This paper uses a formal model to analyze that question, and thereby informs the current reform efforts on the fields of banking supervision. Our main finding is that, while there are good reasons...

This paper provides a rationale for the macro-prudential regulation of insurance companies, where capital requirements increase in their contribution to systemic risk. In the absence of systemic risk, the formal model in this paper predicts that optimal regulation may be implemented by capital...

International power trade requires the existence of regulation and a formal agreement between the countries. In South America power trade is mainly a bilateral spot trade decided by system operators, at prices resulting from rules determined in long term agreements between countries. The...