Autori:
SCHMIDT-EISENLOHR, Tim,
NIEPMANN, FriederikeTitolo:
Bank Bail-Outs, International Linkages and CooperationPeriodico:
European University Institute of Badia Fiesolana (Fi). Department of Economics - Working papersAnno:
2010 - Fascicolo:
5 - Pagina iniziale:
1 - Pagina finale:
61Financial institutions are increasingly linked internationally and engaged in cross-border operations. As a result, financial crises and potential bail-outs by governments have important international implications. Extending Allen and Gale (2000) we provide a model of international contagion allowing for bank bail-outs financed by distortionary taxes. In the sequential game between governments, there are inefficiencies due to spillovers, free-riding and limited burden-sharing. When countries are of equal size, an increase in cross-border deposit holdings improves, in general, the non-cooperative outcome. For efficient crisis managment, ex-ante fiscal burden sharing is essential as ex-post contracts between governments do not achieve the same global welfare.
Esportazione dati in Refworks (solo per utenti abilitati)
Record salvabile in Zotero