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on Market Microstructure |
| By: | Mario Cerrato; Shengfeng Mei |
| Abstract: | Valuation adjustments (XVAs) to systemic US banks' derivatives portfolios - caused by swings in their own creditworthiness and that of their clients; for example, COVID-19 has had a significant impact on their revenues and, therefore, market intermediation. This paper studies the implications of funding value adjustments (FVA) on banks' equity holders. Indeed, it is important to understand this implication, as dealers work in the interests of their shareholders. Therefore, intermediation could result in impairment when that cannot be achieved due to friction. Our findings offer critical insights into how financial institutions navigate valuation adjustments and their impact on banks' balance sheets and discuss policy implications related to the main results. |
| Keywords: | XVA, Banking, Financial Markets |
| JEL: | G12 G21 G32 E44 F31 |
| Date: | 2025–01 |
| URL: | https://d.repec.org/n?u=RePEc:gla:glaewp:2025_07 |
| By: | Christos Genakos; Mario Pagliero; Lorien Sabatino; Tommaso Valletti |
| Abstract: | Fixed book price (FBP) agreements are a form of resale price maintenance applied to books in various countries. FBP restricts retail price competition with the aim of promoting book production variety. Yet, despite its popularity and adoption in many countries, there is no empirical evidence on its effects. We offer systematic evidence on the impact of FBP on book variety and prices using a detailed new dataset from Italy that includes the universe of books published and bought, before and after the introduction of FBP. Our results indicate that FBP raises prices without significantly affecting the number of new books published in the marketplace. However, it also increases considerably the variety of books actually bought, especially from independent bookstores. We estimate a structural model of demand that accounts for both effects, finding that consumers overall benefited from the regulation. |
| Keywords: | cultural goods, resale price maintenance, book market, ex-post policy evaluation |
| Date: | 2025–03–19 |
| URL: | https://d.repec.org/n?u=RePEc:cep:cepdps:dp2085 |