in Economic Policy
October 2010; p ublished online August 2014 .
Journal Article. Subjects: Economic Growth and Aggregate Productivity; Financial Regulation; Health, Education, and Welfare; Labour and Demographic Economics; Macroeconomics and Monetary Economics; Public Economics; Regional Government Analysis. 17937 words.
Policy discussions on the recent financial crisis feature widespread calls to address the pro-cyclical effects of regulation. The main concern is that the new risk-sensitive bank capital...