Results 1 to 10 of about 320,240 (206)
The dynamics of work and debt [PDF]
SSRN Electronic Journal, 2004 This paper characterizes the labor supply and borrowing of a household facing collateral requirements that limit its debt and compel it to accumulate equity in its durable goods stock. The household's discount rate exceeds the market rate of interest, so
Jeffrey R. Campbell, Zvi Hercowitz
core +5 more sources
Debt, liquidity and dynamics [PDF]
Economic Theory, 2006 Money, which provides liquidity services, is distinct from debt. The introduction of a bank that issues money in exchange for debt and pays out its profit as dividend to shareholders modifies the model of overlapping generations. The set of equilibrium paths, their dynamic properties, as well as the scope and effectiveness of monetary policy are ...
POLEMARCHAKIS, Heracles M. +1 more
openaire +8 more sources
SSRN Electronic Journal, 2015 We study a dynamic setting in which a firm chooses its debt maturity structure and default timing endogenously, both without commitment. The firm, who is waiting for the arrival of an upside event, commits to keep its outstanding bond face-values constant, but controls its debt maturity structure via the fraction of newly issued short-term bonds when ...
Zhiguo He, Konstantin Milbradt
openaire +2 more sources
The dynamics of government debt [PDF]
European Journal of Political Economy, 1996 This paper deals with decision making on government debt in an overlapping-generations model of a small open economy. The government is concerned with the utility of current generations only, but it explicitly takes the effect of current decisions on future government decisions into account. Fiscal policy is constrained by viability conditions.
Harrie A. A. Verbon +2 more
openaire +4 more sources
Debt Maturity and the Dynamics of Leverage [PDF]
SSRN Electronic Journal, 2006 Abstract This paper shows that short debt maturities commit equityholders to leverage reductions when refinancing expiring debt in low-profitability states. However, shorter maturities lead to higher transaction costs since larger amounts of expiring debt need to be refinanced.
Dangl, Thomas, Zechner, Josef
openaire +8 more sources
Public Debt Dynamics and Debt Feedback [PDF]
SSRN Electronic Journal, 2010 We study the dynamics of U.S. public debt in a parsimonious VAR. We find that including debt feedback ensures the stationarity of debt while standard VARs excluding debt may imply an explosive debt path. We also find that the response of debt to inflation or interest shocks is not robust and depends on the policy regime. The recent past suggests that a
Reda, Cherif, Fuad, Hasanov
openaire +2 more sources
Dynamic adverse selection and debt [PDF]
European Economic Review, 1997 This paper argues that the strategic use of debt favours the revelation of information in dynamic adverse selection problems. Our argument is based on the idea that debt is a credible commitment to end long term relationships. Consequently, debt encourages a privately informed party to disclose its information at early stages of a ...
Gilles Chemla +4 more
openaire +6 more sources
The Dynamics of Investment, Payout and Debt [PDF]
SSRN Electronic Journal, 2014 We develop a dynamic agency model of a public corporation. Managers underinvest because of risk aversion. They smooth rents and payout. They do not exploit interest tax shields fully. The interactions of investment, debt, and payout decisions can change drastically depending on managers’ preferences.
Bart M. Lambrecht +3 more
openaire +5 more sources
Dynamics of Investment, Debt, and Default [PDF]
SSRN Electronic Journal, 2013 How does physical capital accumulation affect the decision to default in developing small open economies? We find that, conditional on a level of foreign indebtedness, more capital improves the sovereign’s ability to meet its obligations, reducing the likelihood of default and the risk premium.
Pablo Guerrón-Quintana +2 more
openaire +4 more sources
Dynamic capital structure with callable debt and debt renegotiations [PDF]
Journal of Corporate Finance, 2002 We consider a dynamic trade-off model of a firm's capital structure with debt renegotiation. Debt holders only accept restructuring offers from equity holders backed by threats which are in the equity holders' own interest to execute. Our model shows that in a complete information model in which taxes and bankruptcy costs are the only frictions ...
Christensen, Peter Ove +3 more
openaire +8 more sources