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 … welfare loss of 0.2 percent in the model with hyperbolic discounting consumers. This result holds in spite of the …

definitions between household and industry measures reduces debt underreporting to a factor of two. Underreporting is less severe …