Watch What They Do, Not What They Say : Estimating Regulatory Costs from Revealed Preferences /

We show that distortion in the size distribution of banks around regulatory thresholds can be used to identify costs of bank regulation. We build a structural model in which banks can strategically bunch their assets below regulatory thresholds to avoid regulations. The resulting distortion in the s...

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التفاصيل البيبلوغرافية
المؤلف الرئيسي: Alvero, Adrien
مؤلفون آخرون: Ando, Sakai, Xiao, Kairong
التنسيق: دورية
اللغة:English
منشور في: Washington, D.C. : International Monetary Fund, 2022.
سلاسل:IMF Working Papers; Working Paper ; No. 2022/041
الموضوعات:
الوصول للمادة أونلاين:Full text available on IMF
الوصف
الملخص:We show that distortion in the size distribution of banks around regulatory thresholds can be used to identify costs of bank regulation. We build a structural model in which banks can strategically bunch their assets below regulatory thresholds to avoid regulations. The resulting distortion in the size distribution of banks reveals the magnitude of regulatory costs. Using U.S. bank data, we estimate the regulatory costs imposed by the Dodd-Frank Act. Although the estimated regulatory costs are substantial, they are significatnly lower than those in self-reported estimates by banks.
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وصف مادي:1 online resource (89 pages)
التنسيق:Mode of access: Internet
تدمد:1018-5941
وصول:Electronic access restricted to authorized BRAC University faculty, staff and students