Overcoming Adverse Selection: How Public Intervention Can Restore Market Functioning

By Jean Tirole. 2012

270 citations recorded by the source corpus.

Subfields: Accounting, Economics and Econometrics, Management Science and Operations Research

View Paper: https://www.semanticscholar.org/paper/2d7df68a9a8b90310d0d088ea40b481af417be2d

How researchers see this paper

The researchers whose trusted networks rank it highest, strongest advocate first. Every researcher gets a different order.

In Accounting

In Economics and Econometrics

In Management Science and Operations Research

Citations in the corpus

Where the Risks Lie: A Survey on Systemic Risk (2017, unknown): “See, for instance, Sundaresan and Wang (2015). ow nloaded from https://academ ic.oup.com /rof/article-abstract/21/1/109/2670094 by Erasm us U niversity R otterdam -”
The Financial Crisis of 2007–2009: Why Did It Happen and What Did We Learn? (2015, unknown): “57 Tirole (2012) develops a theoretical model in which such intervention by the central bank can unfreeze the credit market.”
Preventing Zombie Lending (2014, methodology): “Three related papers are those of House and Masatlioglu (2010), Philippon and Skreta (2012), and Tirole (2012). They consider a situation in which the main problem is one of adverse selection in markets relevant for the funding of banks.”
Deadly Embrace: Sovereign and Financial Balance Sheets Doom Loops (2018, unknown): “An important ingredient of our analysis, as in Farhi-Tirole (2012) is that direct and indirect exposures may be hard to assess, leading to supervisory failures, and that banks will exploit the supervisory loopholes to secure cheaper financing and thereby increase their return on equity.”
Adverse Selection and Liquidity Distortion (2011, unknown): “2Warusawitharana (2008) documented that purchases and sales of operating assets by rms generated $162 billion for share holders over the past 20 years.”
Liquidity hoarding and interbank market rates: The role of counterparty risk (2015, unknown): “3 Philippon and Skreta (2012) and Tirole (2012) take a normative approach and study optimal government interventions when markets are impaired by asymmetric information problems of the kind described above.”
Optimal Interventions in Markets with Adverse Selection (2012, background): “We do not address the issue of outstanding long term debt and we refer the reader to Philippon and Schnabl (2009) for a model where debt overhang is the main friction.”
Bank liquidity provision across the firm size distribution (2020, background): “18 In fact, the optimal intervention typically mimics private contracts ( Tirole, 2012; Philippon and Skreta, 2012; Philippon and Schnabl, 2013 ).”