Professor of Economics, Centre for Monetary and Financial Studies (CEMFI) in Madrid, Spain.
We present a model of the maturity of a bank’s uninsured debt. The bank borrows funds and chooses afterwards the riskiness of its assets. This moral...
We present a model of an economy with heterogeneous banks that may be funded with uninsured deposits and equity capital. Capital serves to ameliorate...
This paper considers a model of financial intermediation based on the existence of a moral hazard problem in the choice of investment projects by a...
This paper begins by noting that Leland's (1992) results on the effects of insider trading are not robust to the introduction of some noise in the...
