10
Okt
2023
14:15
- 15:45
IWH Research Seminar
Bailout Addiction: Does Bailout Anticipation Induce Adverse Selection?
Wer
Anjan Thakor
(Washington University in St. Louis, Olin Business School)
Wo
IWH, conference room and via Zoom
The anticipation of a future bailout of distressed firms worsens ex ante adverse selection, causing a market freeze at present and inviting government intervention ("bailout trap").