SFB 649 Discussion Paper 2006-054 On the Coexistence of Banks and Markets Hans Gersbach* Harald Uhlig** * University of Heidelberg and CEPR ** Humboldt-Universität zu Berlin, Deutsche Bundesbank, CentER and CEPR This research was supported by the Deutsche...

SFB 649 Discussion Paper 2006-070 The Welfare Enhancing Effects of a Selfish Government in the Presence of Uninsurable, Idiosyncratic Risk R. Anton Braun* Harald Uhlig** * Faculty of Economics, University of Tokyo, Japan ** Institute of Economic Policy I,...

We present a dynamic general equilibrium model with agency costs, where heterogeneous firms choose among two alternative instruments of external finance - corporate bonds and bank loans. We characterize the financing choice of firms and the endogenous financial structure of the economy. The...

This paper explores the optimal risk sharing arrangement between generations in an overlapping generations model with endogenous growth. We allow for nonseparable preferences, paying particular attention to the risk aversion of the old as well as overall ``life-cycle´´ risk aversion. We...

We present a dynamic general equilibrium model with agency costs, where heterogeneous firms choose between two alternative instruments of external finance - corporate bonds and bank loans. We characterize the financing choice of firms and the endogenous financial structure of the economy. The...