Call for Papers:
To promote research on issues that bear on financial market regulation, the National Bureau of Economic Research (NBER), with the support of the Puelicher Center on Banking at the University of Wisconsin, will convene a conference in Cambridge on October 6-7, 2017. This workshop will draw together researchers from financial economics, industrial organization, contract theory, and macroeconomics to investigate how asymmetric information, market liquidity, contracting imperfections, and other features of financial markets affect regulatory design and financial stability. Key goals are to understand how these frictions interact with existing regulations and to explore the economic efficiency of alternative designs.
Some of the open issues that bear on the regulatory agenda, and that can be addressed at this workshop, include:• The operation of credit and insurance markets with adverse selection, moral hazard, and other information problems.
• The effect of competition among banks on the degree of instability in lending markets and on the efficacy of regulatory changes in affecting credit access for households and firms.
• The role of networks and “financial supply chains” in connecting banks, other financial institutions, and the firms that rely on short-term loans to conduct their business activities.
• The pricing of liquidity risk and the role of capital requirements such as those embodied in Basel III in affecting the equilibrium provision of liquidity.
• The design of disclosure regulation that provides information on portfolio holdings and risk exposures to regulators and market participants in the form of regulatory filings, publicly-disclosed stress testing, and other regulatory constructs.
• The impact of e-commerce and digital currencies on the efficacy of traditional financial regulations, and the design of regulation for these emerging financial technologies.
• The importance of, and consequences of, competition and regulatory arbitrage between banks and non-bank financial institutions, such as money-market mutual funds, that are regulated under different regimes but serve overlapping market needs.
The workshop will begin with a one day conference (October 6, 2017) involving invited paper presentations and comments from formal discussants. The following day (October 7, 2017) the group will engage in a set of structured discussions designed to frame a research agenda for further work in this area, with particular emphasis on projects that draw inspiration from distinct sub-fields of economics.
The conference will welcome both empirical and theoretical research. We encourage submissions of research by scholars who are early in their careers, and from researchers who are not NBER affiliates. To be considered for inclusion on the program, papers must be uploaded by June 30, 2017 to the following site:
Please do not submit papers that will be published by October 2017. Authors chosen to present papers will be notified in early July, 2017. The NBER will cover the travel cost for one author per paper and for invited discussants.