Taxation and regulation of bonus pay – Forum

Date: 2013-02-18

Reference number: OPUSeJ 201302181736TRB

Links: to published article http://www.cepr.org/pubs/new-dps/dplist.asp?dpno=8532

to open-access PDF http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1935776

to cover page: http://www.opusej.org/library/taxation-and-regulation-of-bonus-pay-cover/

Title: Taxation and regulation of bonus pay

Authors: Besley, Timothy and Maitreesh Ghatak

Moderator: N/A

Overview: N/A

Addendum: none

Erratum: none

Bibliography: (alphabetical) N/A

References:

[1] Atkinson, Anthony and Joseph Stiglitz (1980), Lectures on Public Economics, London: McGraw Hill.

[2] Baron, David P and Myerson, Roger B, (1982). Regulating a Monopolist with Unknown Costs, Econometrica, 50(4), 911-30

[3] Bebchuk, Lucian A., and Holger Spamann (2010): Regulating Bankers Pay”, Georgetown Law Journal, 98(2), 247-287.

[4] Bell, Brian and John Van Reenen (2010): “Bankers Bonuses and Extreme Wage Inequality in the UK”, CEP Special Report No. 21 (http://cep.lse.ac.uk/_new/publications/abstract.asp?index=3570)

[5] Besley, Timothy and Maitreesh Ghatak, (2011): Ethical Finance, work in progress.

[6] Bhattacharya, S., A. Boot, and A. V. Thakor (1998): The Economics of Bank Regulation, Journal of Money, Credit & Banking.

[7] Biais, Bruno. and C Casamatta (1999): Optimal leverage and aggregate investment, Journal of Finance.

[8] Bolton, Patrick, Hamid Mehran, Joel Shapiro (2010), Executive Compensation and risk-taking”, unpublished typescript.

[9] Buchanan, James. M. (1975): The Samaritan’s dilemma. In: Altruism, morality and economic theory. In: Edmund S. Phelps (ed.), New York: Russel Sage foundation. 71-85.

[10] Coate, Stephen, (1995), Altruism, the Samaritans Dilemma and Government Transfer Policy, American Economic Review, 85(1), 46-57.

[11] Farhi, E. and Jean Tirole (2011): Collective Moral Hazard, Maturity Mismatch and Systemic Bailouts, NBER Working Paper No. w15138.

[12] Garicano, Luis and R Lastra (2010): ‘Towards a New Architecture for Financial Stability’, forthcoming in Journal of International Economic Law.

[13] Ghatak, Maitreesh and P. Pandey (2000): Contract Choice in Agriculture with Joint Moral Hazard in E¤ort and Risk”, Journal of Development Economics, Vol.63, No.2.

[14] Gorton., Gary (1994): Bank Regulation when Banks and Banking are not the Same, Oxford Review of Economic Policy.

[15] Hakenes, Hendrik and Isabel Schnabel (2010), Bank Bonuses and Bailout Guarantees,”unpublished typescript. 31

[16] Haldane, Andrew, (2010), The $100 Billion Question, Comments at the Institute of Risk and Regulation, Hong Kong available on Bank of England web site.

[17] Hirshleifer, D. and A.V. Thakor (1992): Managerial conservatism, project choice, and debt, Review of Financial Studies.

[18] John, K., A. Saunders, and L.W. Senbet (2000): A theory of bank regulation and management compensation, Review of Financial Studies, 13(1), 95-125.

[19] Levine, R. (2004): The Corporate Governance of Banks: A Concise Discussion of Concepts and Evidence, World Bank Policy Research Working Paper No. 3404.

[20] Myerson, Roger (2010): A Model of Moral-Hazard Credit Cycles, Working Paper, University of Chicago.

[21] Palomino, F. and Andrea Prat (2003): risk-taking and optimal contracts for money managers, RAND Journal of Economics.

[22] Radulescu, Doina, (2010): The E¤ects of a Bonus Tax on Manager Compensation and Welfare, CESifo Working Paper No. 3030.

[23] Thanassoulis, John (2011a): The Case for Intervening in Bankers Pay, University of Oxford Department of Economics Discussion Paper No. 532.

[24] Thanassoulis, John (2011b): Bankers’Pay Structure and Risk, University of Oxford Department of Economics Discussion Paper No. 545.

[25] French, K.R., Martin N. Baily, John Y. Campbell, John H. Cochrane, Douglas W. Diamond, Darrell Duffie, Anil K. Kashyap, Frederic S. Mishkin, Raghuram G. Rajan, David S. Scharfstein, Robert J. Shiller, Hyun Song Shin, Matthew J. Slaughter, Jeremy C. Stein, Rene M. Stulz (2010): The Squam Lake Report, Princeton: Princeton University Press.

[26] Tirole, Jean (2006): The Theory of Corporate Finance, Princeton and Oxford: Princeton University Press.3

Citation: Besley, Timothy and Maitreesh Ghatak , 2011, “Taxation and regulation of bonus pay”, CEPR Industrial Organization and Public Policy Working Paper No. 8532 http://www.cepr.org/pubs/new-dps/dplist.asp?dpno=8532

Academic citations forward:

1 Bijlsma, Michiel, Jan Boone, and Gijsbert Zwart. “Competition for traders and risk.” (2012). http://papers.ssrn.com/sol3/papers.cfm?abstract_id=2013807

2 Feess, Eberhard, and Ansgar Wohlschlegel. “Mandatory Deferral of Banker Bonuses and Misallocation of Risky Projects.” (2012). http://www.eea-esem.com/files/papers/eea-esem/2012/547/MandatoryDeferral_Feb2012.pdf

3 Bénabou, Roland, and Jean Tirole. “Bonus Culture.” (2012). http://businessinnovation.berkeley.edu/williamsonseminar/benabou092712.pdf

4 Feess, Eberhard, and Ansgar Wohlschlegel. “Mandatory Deferral of Banker Compensation and Misallocation of Risky Projects.” Available at SSRN 2118560 (2012). http://papers.ssrn.com/sol3/papers.cfm?abstract_id=2118560

5 Bénabou, Roland, and Jean Tirole. Bonus Culture: Competitive Pay, Screening and Multitasking. No. 756. Institut d’Économie Industrielle (IDEI), Toulouse, 2012. http://www.princeton.edu/~rbenabou/papers/Multitasking%20December.pdf

6 BESLEY, TIMOTHY, and MAITREESH GHATAK. “Bailouts and the Optimal Taxation of Bonus Pay.” (2013). http://econ.lse.ac.uk/staff/mghatak/bonustax1.pdf

Other citations forward:

1 Freeland, Chrystia, Feb 7, 2013, “Putting the magnifying glass on the 1 percent” Reuters New York. http://www.reuters.com/article/2013/02/07/us-column-freeland-idUSBRE916114201302070207

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