Matches in SemOpenAlex for { <https://semopenalex.org/work/W2587053409> ?p ?o ?g. }
Showing items 1 to 69 of
69
with 100 items per page.
- W2587053409 abstract "In European countries recently hit by a sovereign debt crisis, banks have sharply raised their holdings of domestic sovereign debt, reduced credit to firms, and faced rising financing costs, raising concerns about economic and financial resilience. This paper develops a general equilibrium model with optimizing banks and depositors to account for these facts and provide a framework for policy assessment. Under-capitalized banks in default-risky countries have an incentive to gamble on domestic sovereign bonds. Unless there is perfect transparency of bank balance sheets, the optimal reaction by depositors to bank insolvency risk leaves the economy susceptible to self-fulfilling shifts in sentiments. In a bad equilibrium, sovereign risk shocks lead to a prolonged period of financial fragility and a persistent drop in output. The model is quantified using Portuguese data and generates similar dynamics to those observed in the Portuguese economy during the debt crisis. Policy interventions face a trade-off between alleviating funding constraints and strengthening incentives to gamble. Liquidity provision to banks may eliminate the good equilibrium when not targeted. Targeted interventions have the capacity to eliminate adverse equilibria." @default.
- W2587053409 created "2017-02-17" @default.
- W2587053409 creator A5006418365 @default.
- W2587053409 date "2016-01-01" @default.
- W2587053409 modified "2023-09-23" @default.
- W2587053409 title "Sovereign Risk and Bank Risk-Taking" @default.
- W2587053409 hasPublicationYear "2016" @default.
- W2587053409 type Work @default.
- W2587053409 sameAs 2587053409 @default.
- W2587053409 citedByCount "0" @default.
- W2587053409 crossrefType "posted-content" @default.
- W2587053409 hasAuthorship W2587053409A5006418365 @default.
- W2587053409 hasConcept C10138342 @default.
- W2587053409 hasConcept C120527767 @default.
- W2587053409 hasConcept C139719470 @default.
- W2587053409 hasConcept C144133560 @default.
- W2587053409 hasConcept C162324750 @default.
- W2587053409 hasConcept C178350159 @default.
- W2587053409 hasConcept C183582576 @default.
- W2587053409 hasConcept C2778300220 @default.
- W2587053409 hasConcept C2781332510 @default.
- W2587053409 hasConcept C29122968 @default.
- W2587053409 hasConcept C34447519 @default.
- W2587053409 hasConcept C4163816 @default.
- W2587053409 hasConcept C556758197 @default.
- W2587053409 hasConcept C69738904 @default.
- W2587053409 hasConcept C73283319 @default.
- W2587053409 hasConceptScore W2587053409C10138342 @default.
- W2587053409 hasConceptScore W2587053409C120527767 @default.
- W2587053409 hasConceptScore W2587053409C139719470 @default.
- W2587053409 hasConceptScore W2587053409C144133560 @default.
- W2587053409 hasConceptScore W2587053409C162324750 @default.
- W2587053409 hasConceptScore W2587053409C178350159 @default.
- W2587053409 hasConceptScore W2587053409C183582576 @default.
- W2587053409 hasConceptScore W2587053409C2778300220 @default.
- W2587053409 hasConceptScore W2587053409C2781332510 @default.
- W2587053409 hasConceptScore W2587053409C29122968 @default.
- W2587053409 hasConceptScore W2587053409C34447519 @default.
- W2587053409 hasConceptScore W2587053409C4163816 @default.
- W2587053409 hasConceptScore W2587053409C556758197 @default.
- W2587053409 hasConceptScore W2587053409C69738904 @default.
- W2587053409 hasConceptScore W2587053409C73283319 @default.
- W2587053409 hasLocation W25870534091 @default.
- W2587053409 hasOpenAccess W2587053409 @default.
- W2587053409 hasPrimaryLocation W25870534091 @default.
- W2587053409 hasRelatedWork W1173187960 @default.
- W2587053409 hasRelatedWork W1485690284 @default.
- W2587053409 hasRelatedWork W1526251993 @default.
- W2587053409 hasRelatedWork W1947719891 @default.
- W2587053409 hasRelatedWork W2009630732 @default.
- W2587053409 hasRelatedWork W2178060753 @default.
- W2587053409 hasRelatedWork W2460130136 @default.
- W2587053409 hasRelatedWork W2514656350 @default.
- W2587053409 hasRelatedWork W2530553503 @default.
- W2587053409 hasRelatedWork W2597843604 @default.
- W2587053409 hasRelatedWork W3097293012 @default.
- W2587053409 hasRelatedWork W3121199297 @default.
- W2587053409 hasRelatedWork W3121583248 @default.
- W2587053409 hasRelatedWork W3122851554 @default.
- W2587053409 hasRelatedWork W3122937796 @default.
- W2587053409 hasRelatedWork W3122937804 @default.
- W2587053409 hasRelatedWork W3123260988 @default.
- W2587053409 hasRelatedWork W3123536845 @default.
- W2587053409 hasRelatedWork W3123557155 @default.
- W2587053409 hasRelatedWork W980519387 @default.
- W2587053409 isParatext "false" @default.
- W2587053409 isRetracted "false" @default.
- W2587053409 magId "2587053409" @default.
- W2587053409 workType "article" @default.