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Full-Text Articles in Law
Rules, Standards, And Complexity In Capital Regulation, Prasad Krishnamurthy
Rules, Standards, And Complexity In Capital Regulation, Prasad Krishnamurthy
Prasad Krishnamurthy
This article considers two fundamental issues in the design of bank capital regulation — the choice of a rule or standard and the level of complexity in that rule or standard — by revisiting the historical adoption of minimum-capital requirements and risk-based capital requirements. Both theory and the historical evidence suggest that a minimum-capital requirement is optimal when bank regulators seek to manage risks that are costly to estimate and that a risk-weighted capital requirement, in contrast, requires a precise understanding of both bank risk and the strategic response of banks to regulation. This article uses historical evidence to illustrate …
Public Distribution System Reforms And Consumption In Chhattisgarh: A Comparative Empirical Analysis, Prasad Krishnamurthy, Vikram Pathania, Sharad Tandon
Public Distribution System Reforms And Consumption In Chhattisgarh: A Comparative Empirical Analysis, Prasad Krishnamurthy, Vikram Pathania, Sharad Tandon
Prasad Krishnamurthy
Chhattisgarh’s Public Delivery System (PDS) reforms have been lauded as a model for the National Food Security Act and for other states to emulate. Previous research has shown that PDS rice consumption increased in Chhattisgarh following reforms by the Raman Singh government that began in 2004. However, one third of PDS rice consumption growth in Chhattisgarh from 1999/2000 to 2009/2010 took place before 2004. This magnitude is over 70 percent when growth is measured relative to comparison regions that undertook no reforms. This finding suggests that the pre-2004 reforms to Fair Price Shop (FPS) ownership and state procurement by the …
Banking Deregulation, Local Credit Supply, And Small Business Growth, Prasad Krishnamurthy
Banking Deregulation, Local Credit Supply, And Small Business Growth, Prasad Krishnamurthy
Prasad Krishnamurthy
I show that the deregulation of bank branching in the United States lowered the sensitivity of small business growth to local credit supply. In urban markets, within-state deregulation of branching resulted in an 80% decrease in the effect of local deposit growth on the growth of establishments with 20-99 employees. Across-state deregulation had an effect of comparable size in county markets. I find effects of similar magnitude using employment growth and payroll growth as measures of business growth. Using the history of litigation over the scope of state bank regulation, I show these results continue to hold for states that …
Feds Should Use Inventive Method To Restructure Home Debt, Prasad Krishnamurthy
Feds Should Use Inventive Method To Restructure Home Debt, Prasad Krishnamurthy
Prasad Krishnamurthy
No abstract provided.
Wage Garnishment And Household Debt In Ca, Prasad Krishnamurthy
Wage Garnishment And Household Debt In Ca, Prasad Krishnamurthy
Prasad Krishnamurthy
No abstract provided.
Spatial Competition, Network Externalities, And Market Structure: An Application To Commercial Banking, Prasad Krishnamurthy
Spatial Competition, Network Externalities, And Market Structure: An Application To Commercial Banking, Prasad Krishnamurthy
Prasad Krishnamurthy
I develop a model of spatial competition between multi-branch firms in which consumers value the price of services, spatial proximity to their home branch, and the number of other branches in the firm's network. The model delivers within and across market predictions on the pattern and density of branching, the relationship of concentration to market size, the price-concentration relationship, and price dispersion. I consider the applicability of this model to the commercial banking market for retail deposits. I test the model's predictions by utilizing variation in the timing and extent of within-state branching restrictions on banks and bank holding companies …