Frédéric Malherbe
YOU?
Author Swipe
View article: Beyond Pangloss: Financial sector origins of inefficient economic booms
Beyond Pangloss: Financial sector origins of inefficient economic booms Open
Government guarantees of bank liabilities have a long-standing history and are now ubiquitous. We study a model where financial sophistication enhances banks' ability to exploit government guarantees and fuels inefficient economic booms. D…
View article: The Forced Safety Effect: How Higher Capital Requirements Can Increase Bank Lending
The Forced Safety Effect: How Higher Capital Requirements Can Increase Bank Lending Open
Government guarantees generate an implicit subsidy for banks. A capital requirement reduces this subsidy, through a simple liability composition effect. However, the guarantees also make a bank undervalue loans that generates surplus in st…
View article: Optimal Capital Requirements over the Business and Financial Cycles
Optimal Capital Requirements over the Business and Financial Cycles Open
I study economies where banks do not fully internalize the social costs of their lending decisions, which leads to real overinvestment. The bank capital requirement that restores investment efficiency varies over time. During booms, more i…
View article: The Forced Safety Effect: How Higher Capital Requirements Can Increase Bank Lending
The Forced Safety Effect: How Higher Capital Requirements Can Increase Bank Lending Open
Government guarantees generate an implicit subsidy for banks. A capital requirement reduces this subsidy, through a simple liability composition effect. However, the guarantees also make a bank undervalue loans that generates surplus in th…
View article: Pipeline Risk in Leveraged Loan Syndication
Pipeline Risk in Leveraged Loan Syndication Open
Leveraged term loans are typically arranged by banks but distributed to institutional investors. Using novel data, we find that to elicit investors' willingness to pay, arrangers expose themselves to pipeline risk: They have to retain larg…
View article: Unanimous Rules in the Laboratory
Unanimous Rules in the Laboratory Open
We study the information aggregation properties of unanimous voting rules in the laboratory. In line with theoretical predictions, we find that majority rule with veto power dominates unanimity rule. We also find that the strategic voting …
View article: Unanimous Rules in the Laboratory
Unanimous Rules in the Laboratory Open
We study the information aggregation properties of unanimous voting rules in the laboratory.In line with theoretical predictions, we find that majority rule with veto power dominates unanimity rule.We also find that the strategic voting mo…