Anticipating a bailout in the event of a crisis distorts a bank's incentives in multiple dimensions. Bailout payments can, for example, lead banks to issue too much short-term debt while simultaneously underinvesting in liquid assets. To correct these distortions, policymakers may choose to...

Do policies that aim to mitigate fire sale externalities actually improve financial stability? We study this question in a model of financial intermediation where banks may sell long-term assets in financial markets subject to cash-in-the-market pricing and bank runs. In the absence of...

For strategic and competitive insights, this study measures and benchmarks the comparative operating efficiencies of insurance companies in Taiwan and mainland China. We employ the two-stage DEA with the bootstrapped truncated regression approach to examine the overall efficiency of insurance...