Ambiguity, Efficieny and Bank Bailouts

The paper examines the effects of ambiguity in regulation on the equilibrium allocation. Under ambiguous bailout policy, agents’ suffer from a lack of information with regards to the insolvency resolution method, which would be chosen by the regulator if a financial institution fails. In this case, beliefs of bankers regarding whether an insolvent bank is liquidated, may differ from those of depositors. The beliefs may be asymmetric even if bankers and depositors possess absolutely symmetric information about the policy of the regulator. It is shown that such asymmetry in beliefs can generate an allocative inefficiency of the bank based economy.bank bailouts; constructive ambiguity; decision-making, uncertainty

Macroeconomic Evolution after a Production Shock: the Role for Financial Intermediation

Financial intermediaries may increase economic efficiency through intertemporal risk smoothing. However without an adequate regulation, intermediation may fail to do this. This paper studies the effects of a production shock in a closed economy and compares abilities of market-based and bank-based financial systems in processing the shock. Unregulated banking system may collapse in absence of a proper regulation. The paper studies several types of regulatory interventions, which may improve the performance of the banking system.Financial intermediation, overlapping generations, general equilibrium, intertemporal smoothing

Bank Insolvencies, Regulatory Forbearance and Ambiguity

Banking regulators often practice forbearance and ambiguity in insolvency resolutions. The paper examines the effects of regulatory forbearance and ambiguity in a context of allocational efficiency. Bailouts, liquidations and their stochastic policy mix lead to suboptimal allocations if banks do not internalize insolvency costs. The policy of forbearance may make banks internalizing such costs and improves the efficiency of intermediation.Banks, insolvency resolution, forbearance, constructive ambiguity

Non-compensation of an Electromagnetic Compartment of a Combined Calorimeter

The method of extraction of the $e/h$ ratio, the degree of non-compensation, of the electromagnetic compartment of the combined calorimeter is suggested. The $e/h$ ratio of $1.74\pm0.04$ has been determined on the basis of the 1996 combined calorimeter test beam data. This value agrees with the prediction that $e/h > 1.7$ for this electromagnetic calorimeter.Comment: LATEX, 17 pages, 7 figure

Longitudinal Hadronic Shower Development in a Combined Calorimeter

This work is devoted to the experimental study of the longitudinal hadronic shower development in the ATLAS barrel combined prototype calorimeter consisting of the lead-liquid argon electromagnetic part and the iron-scintillator hadronic part. The results have been obtained on the basis of the 1996 combined test beam data which have been taken on the H8 beam of the CERN SPS, with the pion beams of 10, 20, 40, 50, 80, 100, 150 and 300 GeV/c. The degree of description of generally accepted Bock parameterization of the longitudinal shower development has been investigated. It is shown that this parameterization does not give satisfactory description for this combined calorimeter. Some modification of this parameterization, in which the e/h ratios of the compartments of the combined calorimeter are used, is suggested and compared with the experimental data. The agreement between such parameterization and the experimental data is demonstrated.Comment: Latex, 21 pages, 10 figure

Analytical Representation of the Longitudinal Hadronic Shower Development

The analytical representation of the longitudinal hadronic shower development from the face of a calorimeter is presented and compared with experimental data. The suggested formula is particularly useful at designing, testing and calibration of huge calorimeter complex like in ATLAS at LHC.Comment: 5 pages, 1 figur

Non-Compensation of the Barrel Tile Hadron Module-0 Calorimeter

The detailed experimental information about the electron and pion responses, the electron energy resolution and the e/h ratio as a function of incident energy E, impact point Z and incidence angle $\Theta$ of the Module-0 of the iron-scintillator barrel hadron calorimeter with the longitudinal tile configuration is presented. The results are based on the electron and pion beams data for E = 10, 20, 60, 80, 100 and 180 GeV at $\eta$ = -0.25 and -0.55, which have been obtained during the test beam period in 1996. The results are compared with the existing experimental data of TILECAL 1m prototype modules, various iron-scintillator calorimeters and with some Monte Carlo calculations.Comment: 33 pages, 20 figure