More or less competitive banking?

Barcelona GSE Focus

Xavier Freixas and Kebin Ma reexamine the classical issue of the possible trade-offs between banking competition and financial stability by highlighting different types of risk and the role of leverage. By means of a simple model, they show that competition can affect portfolio risk, insolvency risk, liquidity risk, and systemic risk in different ways.

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How much to tax and how to spend tax money?


How much should people be taxed and what should tax revenues be spent on? Surprisingly, these topics have mostly been treated in isolation in academic research. Joan Esteban and Laura Mayoral present a model that determines the consensus income tax schedule, the composition of public expenditure, and the size of government.

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To connect or not to connect? A tale of network access


If I call your Vodafone mobile from my Orange mobile, who should pay the cost of termination incurred by Vodafone? You, me, Orange or Vodafone? For that matter, which has the better business model – Europe with a “caller pays” system, or the US with an “everyone pays” system? Sjaak Hurkens and Angel L. López analyze an oligopoly of telecom networks to show how termination charges play a role in off-network usage and whether efficiency and profitability are achieved with current business models.

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How to measure conflict?


If 1000 people were killed in conflict India, a country with a population of more than 1.2 billion inhabitants, would this have the same impact on the country as a whole as 1000 victims in Nicaragua, a country of 6 million inhabitants? The intuitive answer might be no, but this is exactly what most of the conflict literature is doing. Hannes Mueller makes a case for rethinking the approach of using a threshold of an absolute number of battle victims.

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