Zhu, Yanhui (contributor); Copeland, Laurence S. (contributor) - 2008
latter event occurs with exogenously given
probability in some but not all crisis states. In this setting, the probability of … private sector both default, an event which occurs with an
exogenously given probability conditional on an output disaster.
In … the equityholders, but in the event of a severe
crisis, it may fall short, so that the �rm is forced to default on its …