Regulating Systemic Risk through Transparency: Tradeoffs in Making Data Public
Public or partial disclosure of financial data is a key element in the design of a new regulatory environment. We study the costs and benefits of higher public access to financial data and analyze qualitatively how frequency, disclosure lag and granularity of such open data can be chosen to maximize welfare, depending on the relative magnitude of economic frictions. We lay out a simple framework to choose optimal transparency of financial data.
The views expressed herein are those of the authors and do not necessarily reflect the views of the National Bureau of Economic Research.
Regulating Systemic Risk through Transparency: Trade-Offs in Making Data Public, Augustin Landier, David Thesmar. in Risk Topography: Systemic Risk and Macro Modeling, Brunnermeier and Krishnamurthy. 2014