-term debt affects default and rollover decisions by subsequent policy makers. The equilibrium maturity structure is shaped by …I analyze how lack of commitment affects the maturity structure of sovereign debt. Governments balance benefits of … default induced redistribution and costs due to income losses in the wake of a default. Their choice of short- versus long …

Much of the literature on the economics of mortgage markets has studied the FRM-ARM choice made by individual borrowers … of optimal risk-sharing in mortgage contracts. But since only a small literature has studied this question, more research …’s (1986a) model, using it to characterize optimal contracts in the absence of mortgage termination, and then exploring how …

spending on debt and retiree entitlements. In the model, altruism towards children determines bequests, government debt, and … the time-path of consumption. Altruism towards parents influences incentives to default. If altruism is low, voters demand … fiscal policies that extract substantial resources from future generations. Public debt rises until debt service requires …

This article studies the relationship between debt policies of multinational companies (MNCs) and governments’ tax …

introduce a trade-off model, which studies a MNCs’ financial strategy and shows how debt policy allows multinational groups to …

shortage sell loans on the interbank market. Two equilibria emerge. In the no default equilibrium, all banks hold enough … reserves and remain solvent. In the mixed equilibrium, some banks default with positive probability. The former exists when …

We develop a sovereign debt model with official and private creditors where default risk depends on both the level and … presence of long-term debt overhang, the availability of official funds increases the probability of default on existing debt …, such as reduced ex-post flexibility. The model implies that official lending to sovereigns takes place in times of debt …

We study a competitive model in which market incompleteness implies that debt-financed firms may default in some states … of nature and default may lead to the sale of the firms’ assets at fire sale prices when markets are illiquid. This … incompleteness is the only friction in the model and the only cost of default. The anticipation of such losses alone may distort …

We shed light on the function, properties and optimal size of austerity using the standard sovereign debt model …

defaults. The measure is based on an explicit criterion, the aggregate debt repayments, and is bank’s specific, affected by the … should be injected during a default episode or to evaluate the impact of raising capital before the occurrence of default …