The paper argues that financial deregulation incentivized financial firms to take excessive risks and over …-expand because it turned social insurance against systemic risk into a common pool (or open) resource. The increased size and …

absence of effective regulation. That explains why with deregulation market competition could culminate in excessive risk …Drawing broadly on the literature on the political economy of the financial crisis, the paper looks at deregulation as … opportunistic profit (rent) seeking was more the cause rather than the effect of moral hazard and regulation failure. Deregulation …

The paper argues that financial deregulation incentivized financial firms to take excessive risks and over …-expand because it turned social insurance against systemic risk into a common pool (or open) resource. The increased size and …

support. This reduces their downside risk and leads to moral hazard, i.e. to incentives for these banks to assume excessive … Lender-of-Last-Resort facilities reduce moral hazard; financial sophistication, instead, appears to be conducive to risk …

introduce moral hazard (or increased risk-taking as the result of insurance) not only at the bank but also in the …

Die Finanzmarktregulierung ist auch eine Frage sozialer Nachhaltigkeit. Ist sie unzureichend, können Ungleichgewichte …