Should Governments Have Their Own Banks?

Hendrik Hakenes

The model presented in this video is designed to compare different options for the relation between banks and the public sector and different types of subsidies regarding their effects on social welfare. Comparing five options for interlinkage shows that the best choice often are development banks, if they are not allowed to compete with the private banking sector. In this case firms that would not get money from private banks are granted state aid, HENDRIK HAKENES explains, and the private banking sector is not endangered.

DOI:

https://doi.org/10.21036/LTPUB10024

Researcher

Hendrik Hakenes is Professor of Finance at the University of Bonn. Having completed his PhD at the University of Münster, Hakenes has also held research positions at the Max Planck Institute for Research on Collective Goods, the University of Minnesota and Leibniz University Hannover. Hakenes’s research focuses on banking and finance and industrial economics. An editor for Credit and Capital Markets, since 2018 Hakenes has been principal investigator on a special research project based at the University of Mannheim: “Economic Perspectives on Societal Challenges: Equality of Opportunity, Market Regulation, and Financial Stability”.

University of Bonn (Rheinische Friedrich-Wilhelms-Universität Bonn)

Bonn is one of the large universities in Germany, with around 36,000 students, 550 professors, 6,500 other staff staff. It offers a wide disciplinary spectrum comprising some 200 different degree programmes, from Agricultural Science to Tibetan Studies. This diversity is what characterizes Bonn as a full-range university with a strong international orientation. In many international university rankings Bonn is placed among the 100 best universities in the world.Its academic and research profile features internationally renowned specializations in the fields of Mathematics, Physics/Astronomy, Economics, Chemistry, Pharma Research, Biosciences, Genetic Medicine, Neurosciences and Philosophy/Ethics. Other disciplines, such as Geography and Law, are of outstanding importance within the German research scene. The Rheinische Friedrich-Wilhelms-Universität Bonn is rooted in a long tradition going back almost 200 years. It was founded in 1818 by Friedrich-Wilhelm III, the Prussian king whose name it bears. Imbued with the spirit of Wilhelm von Humboldt, the university quickly joined the circle of Germany's most distinguished universities and became a major pole of attraction for leading scholars as well as students.The list of famous professors ranges from the astronomer Friedrich Wilhelm Argelander (1799-1875), through the chemist August Kekulé von Stradonitz (1829–1896) and political economist Josef Schumpeter (1883–1950) to the philologist Ernst Robert Curtius (1886–1956) and the theologists Karl Barth (1886–1968) and Joseph Ratzinger (born 1927), now Pope Benedict XVI. Bonn's best-known students include Heinrich Heine, Karl Marx, Friedrich Nietzsche, and Konrad Adenauer. The university is proud of a long list of award-winning scientists and scholars, with about twenty Leibniz Prize winners and around thirty ERC grantees. In the last three decades two professors have received the Nobel Prize: Wolfgang Paul (for Physics, 1989) and Reinhard Selten (for Economics, 1994). (Source: University of Bonn)

Should Governments Have Their Own Banks?

Researcher

Original Publication

The Politician and His Banker-How to Efficiently Grant State Aid

Christa Hainz

Hendrik Hakenes