The Redistributive Effects of Financial Deregulation /

Financial regulation is often framed as a question of economic efficiency. This paper, by contrast, puts the distributive implications of financial regulation center stage. We develop a model in which the financial sector benefits from risk-taking by earning greater expected returns. However, riskta...

Disgrifiad llawn

Manylion Llyfryddiaeth
Prif Awdur: Korinek, Anton
Awduron Eraill: Kreamer, Jonathan
Fformat: Cylchgrawn
Iaith:English
Cyhoeddwyd: Washington, D.C. : International Monetary Fund, 2013.
Cyfres:IMF Working Papers; Working Paper ; No. 2013/247
Mynediad Ar-lein:Full text available on IMF
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100 1 |a Korinek, Anton. 
245 1 4 |a The Redistributive Effects of Financial Deregulation /  |c Anton Korinek, Jonathan Kreamer. 
264 1 |a Washington, D.C. :  |b International Monetary Fund,  |c 2013. 
300 |a 1 online resource (42 pages) 
490 1 |a IMF Working Papers 
500 |a <strong>Off-Campus Access:</strong> No User ID or Password Required 
500 |a <strong>On-Campus Access:</strong> No User ID or Password Required 
506 |a Electronic access restricted to authorized BRAC University faculty, staff and students 
520 3 |a Financial regulation is often framed as a question of economic efficiency. This paper, by contrast, puts the distributive implications of financial regulation center stage. We develop a model in which the financial sector benefits from risk-taking by earning greater expected returns. However, risktaking also increases the incidence of large losses that lead to credit crunches and impose negative externalities on the real economy. We describe a Pareto frontier along which different levels of risktaking map into different levels of welfare for the two parties. A regulator has to trade off efficiency in the financial sector, which is aided by deregulation, against efficiency in the real economy, which is aided by tighter regulation and a more stable supply of credit. We also show that financial innovation, asymmetric compensation schemes, concentration in the banking system, and bailout expectations enable or encourage greater risk-taking and allocate greater surplus to the financial sector at the expense of the rest of the economy. 
538 |a Mode of access: Internet 
700 1 |a Kreamer, Jonathan. 
830 0 |a IMF Working Papers; Working Paper ;  |v No. 2013/247 
856 4 0 |z Full text available on IMF  |u http://elibrary.imf.org/view/journals/001/2013/247/001.2013.issue-247-en.xml  |z IMF e-Library