This paper conducts an in-depth analysis of structured finance asset-backed securities collateralized debt obligations …

firm-level data. They develop a structural model with investment, debt, and equity. Debt is fiscally advantageous but …

An important source of inefficiency in long-term debt contracts is the debt dilution problem, wherein a borrower … ignores the adverse impact of new borrowing on the market value of outstanding debt and, therefore, borrows too much and … defaults too frequently. A commonly proposed remedy to the debt dilution problem is seniority of debt, wherein creditors who …

model provides quantitatively similar answers to positive questions such as the causes of the observed rise in debt and …

Is the observed rapid increase in consumer debt over the last three decades good news for consumers? This paper … increase in aggregate debt between 1980 and 2000 in the model with standard exponential discounting consumers, there is a …

An important ineffciency in sovereign debt markets is debt dilution, wherein sovereigns ignore the adverse impact of … new debt on the value of existing debt and, consequently, borrow too much and default too frequently. A widely proposed … remedy is the inclusion of seniority clause in sovereign debt contracts: Creditors who lent first have priority in any …

Philadelphia Fed Policy Forum: “Budgets on the Brink: Perspectives on Debt and Monetary Policy.” December 2, 2011> …