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We propose and implement a method that provides quantitative estimates of the extent to which higher-than-expected inflation can lower the real value of outstanding government debt. Looking forward, we derive a formula for the debt burden that relies on detailed information about debt maturity...
Persistent link: https://www.econbiz.de/10011084372
Copulas offer financial risk managers a powerful tool to model the dependence between the different elements of a … an accurate copula for risk management. We extend standard goodness-of-fit tests to copulas. Contrary to existing … is too optimistic on diversification benefits, while the Gumbel copula is too pessimistic. Moreover, these differences …
Persistent link: https://www.econbiz.de/10005792215
We analyze the impact of mandatory access on the infrastructure investments of two competing communications networks …
Persistent link: https://www.econbiz.de/10005497926
productivity and human capital investments. Using light intensity as an alternative measure for economic activity confirms the …
Persistent link: https://www.econbiz.de/10011084232
investments of banks at the security level for 2005-2012 in conjunction with the credit register from Germany. Analyzing data at … increase their overall investments in securities, especially in those that had a larger price drop. The quantitative effects …
Persistent link: https://www.econbiz.de/10011196029
frictions, both parties in a match are partially locked-in when they bargain over the joint surplus from their sunk investments … case of investments in homogenous capital only the agents on the short side acquire ownership of capital. There is always …
Persistent link: https://www.econbiz.de/10005036243
Does inefficiency of financial markets have real consequences? Or does it only result in transfers of wealth from noise traders to arbitrageurs? We study firm business investment to address this question. In our model, benevolent managers of overvalued companies invest in projects with negative...
Persistent link: https://www.econbiz.de/10005067581
This Paper studies the optimal policies of borrowers (firms or individuals) who may default subject to default costs, and analyses the asset pricing implications. Borrowers defaulting under adverse economic conditions may, despite incurring default costs, emerge as wealthier than non-borrowers...
Persistent link: https://www.econbiz.de/10005788927
investments. …
Persistent link: https://www.econbiz.de/10005791206
The stabilisation of GHG atmospheric concentrations at levels expected to prevent dangerous climate change has become an important, global, long-term objective. It is therefore crucial to identify a cost-effective way to achieve this objective. In this paper we use WITCH, a hybrid...
Persistent link: https://www.econbiz.de/10005791545