Balancing the banks Dewatripont, Mathias; Rochet, Jean-Charles; Tirole, Jean ...
2010., 20100419, 2010, 2010-04-19, 20100101
eBook
The financial crisis that began in 2007 in the United States swept the world, producing substantial bank failures and forcing unprecedented state aid for the crippled global financial system. ...Bringing together three leading financial economists to provide an international perspective, Balancing the Banks draws critical lessons from the causes of the crisis and proposes important regulatory reforms, including sound guidelines for the ways in which distressed banks might be dealt with in the future.
Free Drug Samples and the Opioid Crisis Dewatripont, Mathias; Goldman, Michel
The New England journal of medicine,
08/2018, Volume:
379, Issue:
8
Journal Article
Peer reviewed
Open access
Key among the drug-company practices driving the opioid crisis is provision of “starter coupons”: getting a free “taste” of these medications can precipitate compulsive and long-lasting seeking of ...substances that reproduce their effects.
Using a comprehensive dataset of all medium and large enterprises in China between 1998 and 2007, we show that industrial policies allocated to competitive sectors or that foster competition in a ...sector increase productivity growth. We measure competition using the Lerner Index and include as industrial policies subsidies tax holidays, loans, and tariffs. Measures to foster competition include policies that are more dispersed across firms in a sector or measures that encourage younger and more productive enterprises.
The recent crisis has brought to the fore the cyclical properties of banking regulation. Countercyclical buffers and enhanced capital requirements meant to stabilize banks' balance sheets across the ...cycle are not costless, and a delicate balance needs to be reached between providing incentives to generate value and discouraging excessive risk taking. The paper develops a model in which, in contrast with Modigliani—Miller, outside equity and capital requirements matter. It analyses banking regulation in the presence of macroeconomic shocks and studies the desirability of self-insurance mechanisms such as countercyclical capital buffers or dynamic provisioning, as well as "macro-hedges" such as CoCos and capital insurance.
We develop a model that clarifies the respective advantages and disadvantages of academic and private-sector research. Rather than relying on lack of appropriability or spillovers to generate a ...rationale for academic research, we emphasize control-rights considerations, and argue that the fundamental tradeoff between academia and the private sector is one of creative control versus focus. By serving as a precommitment mechanism that allows scientists to freely pursue their own interests, academia can be indispensable for early-stage research. At the same time, the private sector's ability to direct scientists toward higher-payoff activities makes it more attractive for later-stage research.
Abstract
Purpose
Policymakers have struggled to maintain SARS-CoV-2 transmission at levels that are manageable to contain the COVID-19 disease burden while enabling a maximum of societal and economic ...activities. One of the tools that have been used to facilitate this is the so-called “COVID-19 pass”. We aimed to document current evidence on the effectiveness of COVID-19 passes, distinguishing their indirect effects by improving vaccination intention and uptake from their direct effects on COVID-19 transmission measured by the incidence of cases, hospitalizations, and deaths.
Methods
We performed a scoping review on the scientific literature of the proposed topic covering the period January 2021 to September 2022, in accordance with the PRISMA-ScR guidelines for scoping reviews.
Results
Out of a yield of 4,693 publications, 45 studies from multiple countries were retained for full-text review. The results suggest that implementing COVID-19 passes tends to reduce the incidence of cases, hospitalizations, and deaths due to COVID-19. The use of COVID-19 passes was also shown to improve overall vaccination uptake and intention, but not in people who hold strong anti-COVID-19 vaccine beliefs.
Conclusion
The evidence from the literature we reviewed tends to indicate positive direct and indirect effects from the use of COVID-19 passes. A major limitation to establishing this firmly is the entanglement of individual effects of multiple measures being implemented simultaneously.
•The paper analyzes the lessons of the covld vaccine experience for Europe.•It documents the value of the US biotech innovation ecosystem.•It details the challenge of vaccine hesitancy in the overall ...process.•It suggests extending EU Commission role in drug price negotiations.
This paper analyzes the subsequent steps of the covid vaccine experience in the European Union. It stresses the features of the US innovation ecosystem which were responsible for its success. It argues that the European Union did reasonably well in procuring vaccines and logistically organizing their delivery but that vaccine hesitancy proved to be a key constraint. The paper discusses European countries’ vaccination strategies and their plusses and minusses. Finally, it draws some lessons for dealing with the tradeoff between drug and vaccine innovation and affordability, an issue whose importance is bound to grow with promising but costly scientific advances.
More than 5years after the fall of Lehman Brothers, and at a time where the Banking Union will start with a Balance Sheet Assessment, several regulatory initiatives are trying to make bailouts ...harder, and push forward ‘bail-in’ as an alternative. This article discusses the pros and cons of these initiatives, and stresses in particular, looking at various cases of banking crises, that financial instability can be much more costly than bailouts. It therefore pleads for: (i) not ruling out prefunded bailouts as an alternative/complement to bail-in, especially to deal with negative macroeconomic shocks; (ii) making sure markets will understand that the risk of bail-in is concentrated on long-term bank liabilities.
•Paper discusses evolution of banking regulation since 1930s.•Analyzes several banking crises of last 40years.•Procrastination, financial instability often costlier for taxpayers than bailouts.•New European bail-in rules should keep in mind this fact as Banking Union starts.
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