8, no. 1, pp. 23–38; and Elijah Brewer II and Julapa Jagtiani (2013), “How Much Did Banks Pay to Become Too-Big-To-Fail and to Become Systemically Important?” Journal of Financial Services Research, vol. 43, pp. 1–35. Estimating the exact size of this funding advantage depends on a number of assumptions as well as contemporaneous market conditions and is difficult to quantify robustly.
Estimates must consider a number of factors, including market participants' beliefs about the likelihood of an institution's failure, the value of a government bailout of debt holders were it to occur, and the likelihood that the government would actually choose to bail out debt holders in the event of a failure.