Peter Klimek, Sebastian Poledna, J. Doyne Farmer, Stefan Thurner1,3,4,∗ Section for Science of Complex Systems; Medical University of Vienna; Spitalgasse 23; A-1090; Austria Institute for New Economic Thinking at the Oxford School and Mathematical Institute, Eagle House, Walton Well Rd., University of Oxford OX2 3ED; UK Santa Fe Institute; 1399 Hyde Park Road; Santa Fe; NM 87501; USA IIASA, Sch...

Since bail legislation was enacted in the 1970s, Australia has experienced a continual increase number of prisoners on remand. Amendments to and police discretion have been shown contribute this increase. Further, an accused’s vulnerability affects whether they are granted or denied bail, with vulnerable people being more likely be bail. Vulnerability criminal justice system refers factors such...

Provision of Social Goods and Soft Budget Constraints* by Lars-Hendrik Röller and Zhentang Zhang Firms in socialist and transitional economies are often obliged to provide a social good in addition to a private good, which makes it difficult for a government to commit not to bail out the firm once it is in financial trouble. This creates a soft budget constraint syndrome which causes the firm t...

The financial crisis in 2008 is of such epic proportions that even astronomical amounts spent to address the problem have so far been insufficient to resolve it. Besides the wellpublicized $700 billion approved by Congress in the autumn of the year, the Federal Reserve had already attempted to bail out institutions and markets with about $1.3 trillion in investments in various risky assets, inc...

This paper identi…es a cost of stress test disclosure that stems from the facilitating role that stress test information can potentially play in coordinating banks into taking excessive risk. We examine a model of risk taking by banks, the concurrent failure of which may induce a bailout decision by a regulator if the number of failing banks is large enough. We …nd a “if ain’t broken don’t …x i...

Although the debate on financial stability in Europe focuses at what level action should be taken (centralised vs decentralised), the key issue seems what kind of action should be taken to resolve a financial crisis. Two types of arrangements for financial stability (labelled loosely as the market-led and the state-led approach) can be distinguished. Before one argues that ‘some action’ may be ...