, together with drastic budgetary cuts aiming at curbing public debt to maintain sustainability. Finally, the paper tries to …

, stochastic environment. Keeping the firm as an ongoing concern has an option value but equity and debt holders value it … option approach, we characterize the resulting agency costs of debt, derive the ‘price’ of these costs and analyse their … dynamics. We also show how agency costs can be reduced by the design of debt and the possibility of renegotiation. …

using debt-output ratios and real interest rates. These last two variables emerge as influences on business defaults in the …

restrained at the beginning of the period by the debt overhang associated with reparations and by the post World War I disruption … 1940s and 1950s. I find no evidence that countries which interrupted debt service in the 1930s found it more difficult to …

between generalized financial crises on the one hand and isolated bank failures, debt defaults and foreign-exchange market … disturbances on the other. We represent this distinction in three sets of linkages: between debt defaults and bank failures …; between exchange-market disturbances and debt defaults; and between exchange-market disturbances and bank failures. In both …

This paper analyzes the 'debt crisis' of the 1930s to see what light this historical experience sheds on recent … incidence and extent of default on sovereign debt, adapting models of debt capacity to the circumstances of the interwar years …

Two general approaches have been offered for dealing with the developing country debt crisis: the first proposes … adopted and the debt crisis of the 1930s was resolved by the `muddling-through' approach of case-by-case negotiation. The …