We study differences in the price paid for liquidity across banks using price data atthe individual bank level. Unique to this paper, we also have data on individualbanks’ reserve requirements and actual reserve holdings, thus allowing us to gaugethe extent to which a bank is short or long...

This paper studies the implications of cross-border financial integration for financialstability when banks’ loan portfolios adjust endogenously. Banks can be subjectto sectoral and aggregate domestic shocks. After integration they can share theserisks in a complete interbank market. When...

Many European countries restrict immigration from new EU member countries. The rationaleis to avoid adverse wage and employment eects. We quantify these eects forGermany. Following Borjas (2003), we estimate a structural model of labor demand,based on elasticities of substitution between workers...