Enrico C. Perotti
Publications
Academic research, book chapters, policy papers, and public writing.
126 publications
Academic Articles
The Euro as an Institutionally Diverse Monetary Union
Studies how differences among member economies shape the political and economic sustainability of a monetary union.
Containing Runs on Solvent Banks: Prioritizing Recovery over Resolution
Proposes combining early recapitalisation with contingent redemption charges to contain runs and support the recovery of viable banks.
Achieving Safety: Personal, Private, and Public Provision
Examines how households obtain guaranteed consumption through personal assets, banks, and public provision, and how these choices affect investment.
Pay, Stay, or Delay? How to Settle a Run
Compares repayment, suspension, and delayed liquidation during bank runs, balancing liquidity needs against liquidation losses and withdrawal incentives.
Capital Forbearance in the Bank Recovery and Resolution Game
Shows how supervisors’ inability to commit to resolution can weaken banks’ incentives to recapitalise and generate widespread forbearance.
The Good, the Bad and the Missed Boom
Shows how opaque bank assets and imbalances in funding can produce prudent credit expansions, risky booms, or insufficient lending, while misleading investors about underlying productivity.
Cheap but Flighty
Explains how capital seeking safety can provide inexpensive funding while remaining vulnerable to sudden reversals.
Convertible Bonds and Bank Risk-Taking
Studies how the design of convertible debt affects banks’ incentives to take risk.
The Emergence of the Corporate Form
Examines the historical emergence of the corporate form and the legal institutions supporting long-lived business organisations.
The Political Economy of Finance
Reviews how political institutions and redistributive shocks shape financial governance, competition, and access to credit.
A Pigovian Approach to Liquidity Regulation
Develops liquidity charges that make banks internalise the systemic costs associated with fragile short-term funding.
Capital Regulation and Tail Risk
Examines whether capital requirements adequately discourage exposure to rare but severe losses.
The Circulation of Ideas in Firms and Markets
Studies how ideas move between firms and markets and how organisational arrangements affect their development.
Confidence Building on Euro Convergence: Evidence from Options
Uses currency options to investigate how financial markets assess the credibility of convergence towards monetary union.
Depersonalization of Business in Ancient Rome
Examines how Roman legal arrangements allowed business activity to become less dependent on the identities of individual participants.
The Political Origins of Pension Funding
Studies how political interests and the distribution of wealth influence the development of funded pension systems.
Entrepreneurs and New Ideas
Examines the incentives surrounding the discovery, exchange, and commercialisation of entrepreneurial ideas.
Unlocking Value: Equity Carve Outs as Strategic Real Options
Models partial subsidiary listings as options that reveal information before a parent chooses between a sale and a buyback.
Finance and Inequality: Channels and Evidence
Reviews the channels connecting financial development, access to finance, and economic inequality.
The Political Economy of Corporate Control and Labor Rents
Explains how the distribution of financial wealth shapes political support for corporate control arrangements and labour rents.
Dominant Investors and Strategic Transparency
Examines how dominant investors influence firms’ disclosure choices and the strategic use of transparency.
Strategic Transparency and Informed Trading: Will Capital Market Integration Force Convergence of Corporate Governance?
Studies how informed trading and strategic disclosure affect corporate governance when capital markets become more integrated.
Machiavellian Privatization
Shows how privatisation can change voters’ financial interests and thereby influence support for future redistribution.
Last Bank Standing: What Do I Gain if You Fail?
Examines how the failure of competing banks changes a surviving bank’s incentives and the implications for banking policy.
Option Pricing under Political Risk
Studies how political risk affects option values and decisions about foreign investment.
Red Barons or Robber Barons? Governance and Investment in Russian Financial-Industrial Groups
Examines governance and investment financing within Russian financial-industrial groups during economic transition.
Security Markets versus Bank Finance: Legal Enforcement and Investor Protection
Studies how legal enforcement and investor protection shape the relative roles of securities markets and bank finance.
Strategic Growth Options
Analyses investment opportunities when early commitments affect a firm’s position relative to competitors.
Inertial Credit and Opportunistic Arrears in Transition
Examines the persistence of credit relationships and payment arrears during the transition to a market economy.
Credible Privatization
Explains how a government can signal commitment to privatisation through retained ownership and the pricing of shares.
The Governance Structure of the Japanese Keiretsu
Models reciprocal debt and equity holdings as mechanisms supporting cooperation, monitoring, and intervention within Japanese business groups.
Bank Lending in Transition Economies
Examines bank lending incentives and financial relationships during the transition from central planning to market economies.
Capital Structure as a Bargaining Tool
Analyses how leverage can alter bargaining positions and influence the renegotiation of contracts.
The Structure of Privatization Plans
Compares the structure of privatisation programmes and the allocation of ownership and control.
Other Academic Publications and Book Chapters
The Unconvertible CoCo Bonds
Examines whether contingent convertible bonds are structured to absorb losses before default.
Trade, Political Institutions and Legal Innovation: The Birth of the Corporation in Amsterdam
Discusses the interaction of trade opportunities, political institutions, and the emergence of the corporation in Amsterdam.
The Roots of Shadow Banking
Discusses the institutional foundations of shadow banking and the role of collateral and creditor protections.
Preventive Macroprudential Policy
Examines preventive macroprudential measures intended to contain the build-up of financial instability.
Targeting the Systemic Effect of Bankruptcy Exceptions
Discusses how bankruptcy exceptions for financial contracts can create systemic risks through collateral liquidation.
Does Father Know Best? A Formal Model of the Paternal Influence on Childhood Social Anxiety
Develops a formal model of paternal influence on children’s social anxiety.
From Government to Regulatory Governance: Privatization and the Residual Role of the State
Reviews the changing role of the state as privatisation shifts attention from public ownership towards regulatory governance.
How to Gain Support for Reforms
Discusses the political support needed to implement structural reforms.
Corporate Governance and the Distribution of Wealth
Examines the relationship between wealth distribution and the political choice of corporate governance institutions.
Enterprise Finance and Investment in Listed Hungarian Firms
Studies the relationship between ownership structures, financing, and investment among listed Hungarian firms.
Lessons from the Russian Meltdown: The Economics of Soft Legal Constraints
Examines how weak legal constraints shaped financial behaviour and contributed to the Russian financial crisis.
Valuation of Internet Companies: A Survey of the Evidence
Reviews approaches and evidence concerning the valuation of internet businesses.
The Russian Meltdown
Discusses the Russian financial crisis and its institutional background.
Internet Portals as Portfolios of Entry Options
Analyses internet portals as portfolios of opportunities to enter new activities.
Investor Dominance and Transparency: On the Role of Corporate Governance
Examines how investor influence and disclosure choices interact with corporate governance and product-market competition.
Financial Reallocation in Russian Groups
Studies the allocation of finance within Russian business groups.
Privatization, Market Development and Political Risk in Emerging Economies
Examines the relationship between privatisation, political risk, and the development of emerging stock markets.
Pricing IPOs in Premature Capital Markets: The Case of Hungary
Studies the pricing of initial public offerings in Hungary’s developing capital market.
Valuation of Strategic Growth Options
Discusses the valuation of growth opportunities when investment decisions interact with competition.
Time-to-Market Capability as a Stackelberg Growth Option
Examines investments that enable earlier market entry, the strategic value of speed, and the resource costs of competing to enter first.
Valuation of Strategic Growth Options
Discusses strategic growth-option valuation in the interaction between real options and game theory.
Performance of Privatization Stocks in Emerging Capital Markets
Examines the performance of privatisation shares in emerging markets and the role of political risk.
State-Owned versus Township and Village Enterprises in China
Compares state-owned firms with township and village enterprises in China.
Bank Restructuring in Russia: A Transparent Strategy of Sustainable Development
Discusses strategies for restructuring Russia’s banking system.
Collusive Trade Credit and Stabilization Policy in Transition
Studies the interaction between trade credit arrangements and stabilisation policy in transition economies.
Financial-Industrial Groups and Financial Crisis: Lessons for Russia
Discusses financial-industrial groups and their implications for financial stability in Russia.
Corporate Law Enforcement and the Development of Security Markets
Examines how corporate law enforcement affects the development of securities markets.
Crosslisting and Shareholder Value Creation: Theory and Evidence from Dutch Foreign Listings
Studies the relationship between foreign stock-market listings and shareholder value for Dutch firms.
The Evolution of Bank Credit Quality in Romania since 1991
Examines the evolution of bank credit quality during Romania’s transition to a market economy.
The Impact of Privatization on Stock Market Development in Emerging Economies
Studies the relationship between privatisation and stock-market development in emerging economies.
What Is Lost by Waiting to Invest
Discusses strategic investment and the costs of delaying commitment.
A Taxonomy of Post-Socialist Financial Systems: Decentralized Enforcement and the Creation of Inside Money
Classifies financial systems in post-socialist economies by their enforcement arrangements and creation of inside money.
Corporate Governance in Mass Privatization
Discusses corporate governance challenges when ownership is transferred through mass privatisation.
Cross-Ownership as a Hostage Exchange to Support Cooperation
Models cross-ownership as a commitment device that can help sustain cooperation between firms.
The Rules of the Games and the Development of Security Markets
Examines the role of institutional rules in the development of securities markets.
Policy Papers and Reports
Stablecoins without Borders: Stablecoin Multi-Country Issuance and Dollar-Run Risks in Europe
Explains how differences in redemption rules can channel global stablecoin runs towards European issuers and proposes contingent stabilisers.
Financial Resilience as Flood Containment
Uses flood containment as an analogy for financial resilience, emphasising timely tools alongside preventive buffers.
Addressing Banks’ Vulnerability to Deposit Runs: Revisiting the Facts, Arguments and Policy Options
Reviews deposit-run vulnerabilities and assesses changes to liquidity regulation, supervision, and other policy tools.
Containing Runs on Solvent Banks: Prioritising Recovery over Resolution
Proposes contingent capital and liquidity measures to allow viable banks to recover before resolution becomes necessary.
Protect the Safe Core: Restating the Central Bank Mandate
Reconsiders the central bank mandate around protecting a safe monetary core.
Corporate Credit and Leverage in the EU: Recent Evolution, Main Drivers and Financial Stability Implications
Documents declining corporate leverage and examines the implications of credit reallocation and growing non-bank finance.
The Roots of Shadow Banking
Reviews the funding structures and bankruptcy privileges underlying shadow banking.
Systemic Liquidity Risk and Bankruptcy Exceptions
Discusses how special treatment of financial collateral in bankruptcy can amplify liquidity risk.
Liquidity Insurance for Systemic Crises
Discusses liquidity insurance and the pricing of banks’ contributions to systemic funding risk.
Liquidity Risk Charges as a Macroprudential Tool
Proposes charges on fragile funding as a tool to contain systemic liquidity risk.
Resilience as a Guide for Regulatory Reform
Advocates credible contingent tools that contain the escalation of financial distress and support recovery.
VoxEU Columns and Blogs
Automatic stabilisers for multi-country issuance stablecoins
Examines the risks of cross-border stablecoin issuance and proposes automatic stabilisers to limit redemption arbitrage.
Building bank resilience by Additional Tier 1 debt reform
Argues for reforming AT1 debt so that it can credibly absorb losses while a bank remains a going concern.
The Swiss Job Undone: The Judicial Overturn of the Credit Suisse AT1 CoCos Write-Down
Discusses the judicial challenge to the Credit Suisse AT1 write-down.
Addressing banks’ vulnerability to runs, part 2: Policy options
Discusses policy options for reducing banks’ vulnerability to runs, including liquidity rules and stronger supervision.
Addressing banks’ vulnerability to runs, part 1: Facts, arguments, and policy challenges
Reviews the role of deposits, interest-rate risk, and the sources of banks’ vulnerability to runs.
The political economy of adapting to climate change
Studies how voters’ age, income, and beliefs affect political support for climate adaptation.
Give recovery a chance: Containing runs on solvent banks
Proposes combining early recapitalisation and measures to contain withdrawals in order to support bank recovery.
How a New Regulatory Framework Could Contain Bank Runs and Promote Recovery
Discusses a regulatory framework combining tools to contain withdrawals and support recovery.
A Recovery Procedure for Undercapitalized Banks
Discusses procedures for intervening in undercapitalised banks before distress escalates into failure.
Corporate credit and leverage in the EU: A long-term view
Reviews long-term developments in EU corporate credit and leverage and their implications for financial stability.
Measures to prevent runs on solvent banks
Compares preventive and contingent measures intended to stop runs on otherwise solvent banks.
Learning from Silicon Valley Bank’s uninsured deposit run
Discusses the lessons of Silicon Valley Bank’s collapse for uninsured deposits and banking regulation.
The Swiss authorities enforced a legitimate going concern conversion
Discusses the Credit Suisse AT1 conversion as a going-concern intervention.
The Coronavirus Shock to Financial Stability
Explains how pandemic disruption exposed liquidity risks in shadow banking and discusses liquidity support and targeted fiscal measures.
Unfair and Unstable: EU Bankruptcy Reform Requires More Scrutiny
Examines fairness and financial stability concerns arising from EU bankruptcy reform.
Financial Stagnation
Explains financial stagnation through persistent savings supply and technologically driven reductions in firms’ demand for borrowing.
The Conduct of Monetary Policy in a Diverse Monetary Union
Examines the redistributive effects of monetary union among countries with different institutional quality.
Public Policy in a Zero-Growth Scenario
Discusses the fiscal and political implications of persistently low long-term growth.
Containing Maturity Mismatch
Argues for closer maturity matching in mortgage finance to reduce risks created by short-term bank funding.
The Roots of Shadow Banking
Discusses how collateral privileges and short-term funding support shadow banking and amplify fire-sale risk.
Solvency II: Three Principles to Respect
Sets out principles for the prudential treatment of insurance liabilities.
Countercyclical Regulation in Solvency II: Merits and Flaws
Discusses the advantages and shortcomings of countercyclical elements in insurance regulation.
Preventive Macroprudential Policy
Advocates preventive instruments and a division of responsibilities between supervisors, central banks, and fiscal authorities.
A Blueprint for Macroprudential Policy in the Banking Union
Discusses coordination and tools for controlling bank-funding risks in a European banking union.
A Consensus View on Liquidity Risk
Discusses a shared framework for understanding and regulating liquidity risk.
Systemic Liquidity Risk: A European Approach
Discusses a European approach to containing the systemic risks of unstable funding.
CoCo Design as a Risk Preventive Tool
Examines how contingent convertible capital can be designed to discourage risk-taking.
The Simple Analytics of Systemic Liquidity Risk Regulation
Explains the economic mechanisms underlying regulation of systemic liquidity risk.
A Prudential Regulatory Issue at the Heart of Solvency II
Discusses prudential concerns in the design of Solvency II insurance regulation.
Tail Risk: Higher Capital Is Not Enough
Explains why greater capital alone may fail to discourage exposure to rare, severe losses.
Serious Reform Starts with a Systemic Risk Tax
Argues for taxes that address institutions’ contributions to systemic risk.
Tax Banks to Discourage Systemic-Risk Creation, Not to Fund Bailouts
Discusses the incentive role of bank taxation in limiting systemic risk.
The Governance of Macro-Prudential Taxation
Discusses institutional responsibility for macroprudential taxation.
We Must Escape the Grip of Short-Term Funding
Discusses the financial stability risks associated with reliance on short-term funding.
Newspaper and Magazine Articles
Nederland, het voortbestaan van de euro staat op het spel
Discusses the Netherlands’ stake in the future of the euro during the pandemic crisis.
Repeat the Success of the Banking Union
Discusses the banking union as a model for further European institutional reform.
Three Principles for Solvency II Insurance Rules
Sets out principles for insurance regulation and the valuation of long-term liabilities.
How to Stop the Fire in European Banks
Discusses policy responses to distress in European banking.
Liquidity Risk Insurance
Proposes liquidity insurance arrangements to address systemic liquidity risk.
Harvard aan de Amstel kost wat
Discusses the resources needed for university ambition and research.
Nederland vernietigt de onderzoeksdrift
Discusses the conditions supporting research in Dutch universities.
Weg met de bloedeloze universiteiten
Comments on the organisation of universities.
Confidence Building and Emerging Market Development
Discusses confidence and the development of emerging financial markets.
Legal Enforcement and the Development of Security Markets
Discusses legal enforcement and securities-market development.
Sustained Privatization Resolves Political Risk, Bolsters Development
Discusses how sustained privatisation can address political risk and support market development.
Hoge aandelenkoersen wijzen op lager toekomstig rendement
Discusses the relationship between stock-market valuations and prospective returns.
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