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the strategies chosen by their opponents, but also their set of admissible strategies. Debreu (1952) proves the existence … this note, we define the class of supermodular social games and give an existence theorem for this class of games. …
Persistent link: https://www.econbiz.de/10005062382
for the existence of market equilibrium. We assume that the production functions of the profit maximizing agents are …
Persistent link: https://www.econbiz.de/10005407584
simulation. The appendices proves the existence of the (modified) normal and shifted log-normal LLM used in the pricing. The link …
Persistent link: https://www.econbiz.de/10005561602
's option value, even after compensating a lender for expected default losses. This non-neutrality of debt arises from an … risks, and lowers the investment threshold. Compensating the lender for expected default losses reduces project …
Persistent link: https://www.econbiz.de/10005076954
Dentro de los casos más recientes de transición a regímenes de flotación del tipo de cambio, el caso brasileño por su cercanía geográfica e intensidad de la relación bilateral, así como el éxito obtenido en términos de baja inflación en los precios al consumidor, relativa estabilidad...
Persistent link: https://www.econbiz.de/10005408408
-spread default affects the banking system. We find that the interaction of credit, asset prices, and loan losses explains a complete … deteriorate, an asset price decline causes default among leveraged firms, and banks suffer loan losses. Their size determines …
Persistent link: https://www.econbiz.de/10005412610
falling asset prices affect the banking system through wide-spread borrower default, while deriving explicit solutions and … through’ the bank balance sheet; once borrowers default, asset prices drive bank capital, and constrained credit in turn …
Persistent link: https://www.econbiz.de/10005413177
reorganization or liquidation if the value of the firm falls below a certain threshold. In the event of default, however, many …
Persistent link: https://www.econbiz.de/10005561605
Interfirm late payments are a hot issue in the EU, as witnessed by the 1998 bills passed in Italy and in the U.K. and by the soon to be approved EU Directive. Comprehensive information, especially on the effective own cost, is however almost absent in the literature. The paper provides the first...
Persistent link: https://www.econbiz.de/10005076953
existence and characterization of financial contracts that are solutions to a non- convex dynamic programming problem. …
Persistent link: https://www.econbiz.de/10005413259