The Dynamics of Default and Debt Reorganization
This article documents the fact that when debtors decide to default on their obligations too early, it is in the creditors’ collective interest, as...
The Governance of Exchanges: Members' Co-operatives Versus Outside Ownership
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Entrepreneurial Wealth, The Level of Investment and Credit Policy
Empirical evidence suggests that capital market constraints prevent low-wealth individuals from setting up in business. This may be attributable to...
Investment Trap
To what extend can optimal contracts and renegotiation designs alleviate equity market failure due to asymmetric information and transactions costs...
Capital Adequacy and Foreign Exchange Risk Regulation - Recent Developments in Industrial Countries
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The Decision to go Public: An Overview
The paper reviews firms' motives for seeking publicly traded rather than privately held finance. Factors that play a role are the need to provide a...
Dynamic Banking: A Reconsideration
Financially Intermediated and Stock Market consumption-investment allocations, with and without governmental interventions, are compared in a welfare...
Fiscal Policy and the Sub-Optimality of the Walsh Contract for Central Bankers
We develop a model of monetary and fiscal policy where the time inconsistency of optimal monetary policy is due to the effects of tax distortions. If...
Option Pricing with a Quadratic Diffusion Term
Several authors have derived closed-form option prices in models where the underlying financial variable follows a diffusion process with the...
What is the Central Bank's Game?
In this paper we, first, by explicitly taking account of the private sector's influence and pressure on the monetary authorities, provide a more...
Why Higher Takeover Premia Protect Minority Shareholders: Tender Offers When Dilution is Endogeneous
The combination of post-takeover moral hazard by the bidder and free-riding by the target shareholders leads the former to acquire in a tender offer...
Large Shareholders, Monitoring and the Value of the Firm
This paper argues that the ownership structure of a firm acts as a commitment device to delegate a certain degree of authority from the shareholders...
The Term Structure of Credit Risk: Estimates and Specifications
This paper examines alternative methods for making inferences about the value and dynamics of (unobserved) credit quality from market prices. Using...
