We study both analytically and numerically the problem of a partially inelastic bail on a platform vibrating with frequency

We develop a theory of market crashes based on differences of opinion among investors. Because of short-sales constraints, bearish investors do not initially participate in the market and their information is not revealed in prices. However, if other previously bullish investors bail out of the market, the originally bearish group may become the marginal “support buyers,” and more will be learn...

We develop an approach to utilize anisotropic metamaterials to solve one of the fundamental problems of modern plasmonics--parasitic scattering of surface waves into free-space modes, opening the road to truly two-dimensional plasmonic optics. We illustrate the developed formalism on the examples of plasmonic refractor and plasmonic crystal, and discuss limitations of the developed technique an...

We examine the optimal size and composition of banks’ total loss absorbing capacity (TLAC). Optimal size is driven by the trade-off between providing liquidity services through deposits and minimizing deadweight default costs. Optimal composition (equity vs. bail-in debt) is driven by the relative importance of two incentive problems: risk shifting (mitigated by equity) and private benefit taki...

Bail-in has become the favorite focal point, or rather the favorite provocative term in the policy debate about bank rescue programs in Europe. For instance, over the past few weeks, the German government has insistently requested a substantial participation of the private sector in any further debt restructuring. Others, like the President of the European Central Bank have vigorously opposed a...

Two studies were conducted to determine how real felony court judges decide the amount of bail to set. In the first, the judges were presented with fictitious case histories containing the relevant information in a factorial design. In the second, multiple regression techniques were used to examine the impact of different kinds of information on decisions made by judges in actual bail hearings....