We study time-consistent bank resolution mechanisms. The key constraint is that
governments cannot avoid bailouts that are ex post efficient. Contrary to common wisdom …

Authorities' support policies shape the location and continuation of industrial and banking
activity on their soil. Firms' locus of activity depends on their prospect of receiving financial …

We study the scope for international cooperation in macroprudential policies. Multinational
banks contribute to and are affected by fire sales in countries they operate in. National …

How do resolution frameworks affect the private restructuring of distressed banks? We
model a distressed bank's shareholders and creditors negotiating a restructuring given …

Should policymakers adapt their macroprudential and monetary policies when the financial
sector is vulnerable to belief-driven boom-bust cycles? I develop a model in which financial …

We develop a dynamic model of optimal regulatory design of three regimes that deal with
distress of large, complex banking organizations. These regimes are 1) bailout, as under …

We model dynamic bank capital structure under three optimally‐designed regulatory
regimes for dealing with potential default—bailout, in which the government provides capital; …

We empirically examine the Capital Purchase Program (CPP) used by the US government to
bail out distressed banks and its implications for regulatory policy. We find strong evidence …

While government led bank capital infusions in US and other developed markets have been
usually contingent an external shock or crisis episode, India presents a unique setting where …

We model the optimal resolution of insolvent firms in general equilibrium.
Collateralconstrained banks lend to (i) solvent firms to finance investments and (ii) …