Lindset, Snorre; Lund, Arne-Christian; Persson, Svein-Arne - In: Journal of Economic Dynamics and Control 39 (2014) C, pp. 98-112
We present a simple model for risky, corporate debt. Debtholders and equityholders have incomplete information about the financial state of the debt issuing company. Information is incomplete because it is delayed for all agents, and it is asymmetrically distributed between debtholders and...