Economics at your fingertips  

The Benefits and Costs of the TARP Bailouts: A Critical Assessment

Allen N. Berger
Additional contact information
Allen N. Berger: University of South Carolina, 1014 Greene Street, Columbia, SC 29208, USA2Wharton Financial Institutions Center, USA3European Banking Center, The Netherlands

Quarterly Journal of Finance (QJF), 2018, vol. 08, issue 02, 1-29

Abstract: We assess benefits and costs of the Troubled Asset Relief Program (TARP) based on theory, data, and empirical research to date. TARP was intended to attenuate systemic risk and improve the real economy, and we focus on these as the most important potential effects of the program. Evidence suggests mostly short-term social benefits in reducing systemic risk and improving the real economy. However, long-term evidence is limited — suggesting relatively long-lasting real economic improvements that might be offset by long-term increases in systemic risk. We give TARP a grade of “incomplete,” pending further research, and suggest some directions for this research.

Keywords: TARP; banks; bailouts; financial crises (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link:

Ordering information: This journal article can be ordered from

DOI: 10.1142/S2010139218500118

Access Statistics for this article

Quarterly Journal of Finance (QJF) is currently edited by Fernando Zapatero

More articles in Quarterly Journal of Finance (QJF) from World Scientific Publishing Co. Pte. Ltd.
Bibliographic data for series maintained by Tai Tone Lim ().

Page updated 2019-03-09
Handle: RePEc:wsi:qjfxxx:v:08:y:2018:i:02:n:s2010139218500118