Working Paper

17 May 2020

Regulatory Suspensions in Times of Crisis: The Challenges of Covid-19 and Thoughts for the Future

The Covid-19 crisis in 2020 severely impacted the corporate and in turn, the financial sectors of the UK, entailing responses from financial regulators to implement unprecedented regulatory suspensions that affect both the...

Hse-Yu Iris Chiu | Andreas Kokkinis | Andrea Miglionico
21 April 2021

The Tragedy of ‘The Tragedy of the Commons’ – Hardin vs. The Property Rights Theorists

Garrett Hardin’s “The Tragedy of the Commons” (Hardin, 1968) is widely influential but conceptually flawed. Hardin characterizes the commons problem as arising from the exercise of free will in a world with limited carrying...

Jonathan Karpoff
01 September 2015

Caught between Scylla and Charybdis? Regulating Bank Leverage When There is Rent Seeking and Risk Shifting

We develop a theory of optimal bank leverage in which the benefit of debt in inducing loan monitoring is balanced against the benefit of equity in attenuating risk-shifting. However, faced with socially-costly correlated bank...

Viral Acharya | Hamid Mehran | Anjan Thakor