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Journal of Banking & Finance Vol. 35 No. 10 2011

Government, taxes and banking crises

Augusto Hasman1,2; Ángel L. López3,4; Margarita Samartı´n

1 SKEMA Business School · 2 Institut d'Etudes Politiques de Paris · 3 IESE Business School · 4 Universidad de Navarra

open access

Abstract

This paper analyzes the effectiveness of different government policies to prevent the emergence of banking crises. In particular, we study the impact on welfare of using taxpayers money to recapitalize banks, government injection of money into the banking system through credit lines, the creation of a buffer and taxes on financial transactions (the Tobin tax). We illustrate the trade-off between these policies and derive policy implications.

DOI
10.1016/j.jbankfin.2011.03.002
Volume
35
Issue
10
Pages
2761-2770
Language
en
Sources
openalex crossref bibtex:phds-export.bib

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