Finance In Europe Research Articles

The Public Policy Role of the European Investment Bank within the EU

AbstractDespite the increasing sophistication of private financial markets in Europe, the European Investment Bank (EIB) has been expanding as never before. Is the Bank just one among many large banks prepared to provide project finance in Europe, or does it have a distinct public policy role? We argue that its main distinguishing role to date has been to bring competition and efficiency to the less efficient banking markets. But new initiatives envisage a move to more EIB involvement in loan guarantees and equity investment. We review the potential here and offer some cautionary remarks.

The buy-out/property right share choice in film financing: Financial rationing, adverse selection and the bayesian dilemma

Reduced state support of film financing in Europe requires the creation of an efficient market of private cinema financiers. Principal-agent models with and without common consent over film risk show that the two main problems of film financing (high risk and lack of collateral for the borrower) may be solved if the financier achieves economies of scale in costs of capital and is efficient in information gathering. Conversely, the pathology of a market with “inefficient financiers” includes: film financial rationing, adverse selection, and refusal of financial support to otherwise profitable film projects. From the normative point of view, the creation of efficient financiers would be fostered by institutional changes that promote market thickening and “risk spreading” (the case of the USA) instead of simple forms of “risk shifting” (the case of Italy).

Pension Fund Liberalization and the Future of Retirement Financing in Europe

Pension Fund Liberalization and the Future of Retirement Financing in Europe

Financing urban transport projects in Europe

Transport demand in western Europe has risen steadily in recent years and the forecasts are that the unrestrained demand will continue to rise in the foreseeable future. This growth has put considerable pressure on the resources available to finance infrastructure investments and to fund what are seen as socially important social services. The recent developments in eastern Europe and the anticipated growth of the post-Communist states will pat further strains on the fiscal ability of authorities in these countries to fund transport invest- ments and operations. The outcome has been revisions in the way transport projects are funded. This paper, taking a very broad view of what constitutes a transport project, examines the specific nature of urban transport financing in Europe.

Legal Aspects of Aircraft Finance in Europe

Legal Aspects of Aircraft Finance in Europe

Housing Finance in Europe

Housing Finance in Europe