What Happens When You Regulate Risk? Evidence from a Simple Equilibrium Model
The implications of Value-at-Risk regulations are analyzed in a CARA--normal general equilibrium model. Financial institutions are heterogeneous in risk preferences, wealth and the degree of supervision. Regulatory risk constraints lower the probability of one form of a systemic crisis, at the expen...
|Authors and Corporations:||,|
|Other Authors:||Zigrand, Jean-Pierre|
|Type of Resource:||E-Book|
[S.l.] SSRN