The Credit Ratings Game
- P. Bolton, X. Freixas, Joel D. Shapiro
- Economics
- 1 January 2009
The collapse of so many AAA-rated structured finance products in 2007-2008 has brought renewed attention to the causes of ratings failures and the conflicts of interest in the Credit Ratings…
Systemic risk, interbank relations and liquidity provision by the Central Bank
- X. Freixas, Bruno Parigi, J. Rochet
- Economics
- 21 May 2000
We model systemic risk in an interbank market. Banks face liquidity needs as consumers are uncertain about where they need to consume. Interbank credit lines allow to cope with these liquidity shocks…
Equity, Bonds, and Bank Debt: Capital Structure and Financial Market Equilibrium under Asymmetric Information
- P. Bolton, X. Freixas
- EconomicsJournal of Political Economy
- 30 March 2000
This paper proposes a model of financial markets and corporate finance, with asymmetric information and no taxes, where equity issues, bank debt, and bond financing coexist in equilibrium. The…
Relationship and Transaction Lending in a Crisis
- P. Bolton, X. Freixas, L. Gambacorta, Paolo Emilio Mistrulli
- Economics, Business
- 1 July 2013
We study how relationship lending and transaction lending vary over the business cycle. We develop a model in which relationship banks gather information on their borrowers, which allows them to…
Planning Under Incomplete Information and the Ratchet Effect.
- X. Freixas, Roger Guesnerie, J. Tirole
- Economics
- 1 April 1985
Central planning of production is usually performed under asymmetric information which leads to use of an incentive scheme. As the planner revises the scheme over time to take into account…
Conflicts of interest, information provision, and competition in the financial services industry
- P. Bolton, X. Freixas, Joel D. Shapiro
- Economics
- 1 August 2007
Corporate Finance and the Monetary Transmission Mechanism
- P. Bolton, X. Freixas
- Economics
- 1 June 2000
We analyze the transmission effects of monetary policy in a general equilibrium model of the financial sector, with bank lending and securities markets. Bank lending is constrained by capital…
Microeconomics of banking
- X. Freixas, J. Rochet
- Economics
- 1997
Twenty years ago, most banking courses focused on either management or monetary aspects of banking, with no connecting. Since then, a microeconomic theory of banking has developed, mainly through a…
Interbank Market Integration Under Asymmetric Information
- X. Freixas, C. Holthausen
- EconomicsSSRN Electronic Journal
- 1 July 2001
We argue that the main barrier to an integrated international interbank market is the existence of asymmetric information between different countries, which may prevail in spite of monetary…
Optimal Bail Out Policy, Conditionality and Constructive Ambiguity
- X. Freixas
- Economics
- 15 December 1999
This paper addresses the issue of the optimal behaviour of the Lender of Last Resort (LOLR) in its microeconomic role regarding individual financial institutions in distress. It has been argued that…
...
...