In some Asian countries, it is possible that the incentive for banks to behave prudently was seriously eroded not only by the impression that most large financial institutions would not be allowed to fail but also by the extent to which governments directed the lending activities of the banks themselves.
Income  2  Based on the amount of net oil imports by advanced countries, comparing a scenario with oil prices unchanged at 1999 levels with actual data. I thank Michael Fidora for this back-of-the-envelope calculation. 3  For an extensive treatment see A. Brandolini and Smeeding (2007): “Inequality: international evidence”, prepared for the New Palgrave Dictionary of Economics.