Sustainable Shadow Banking
论证影子银行通过为拥有高效投资机会的银行提供规避过度监管的渠道，从而提升社会福利，并提出一种通过征税和补贴引导银行自我选择的新干预措施。
Banking regulation is beneficial because it constrains banks' portfolios to prevent excessive risk taking. But given that regulators usually know less than a bank about its investment opportunities, regulation comes at the cost of foregoing profitable investments. I argue that shadow banking improves welfare because it provides a channel to escape excessive regulation that is asymmetrically more valuable for banks with access to efficient investment opportunities. I propose a novel intervention that improves welfare further by taxing shadow activities, subsidizing regulated activities and allowing banks to self-select into being regulated or not.