The unique capital structure of commercial banking – funding production with demandable debt that participates in the … relationship to size requires untangling cost and profit from decisions about risk versus expected-return because both cost and … profit are functions of endogenous risktaking. ; This chapter gives an overview of two general empirical approaches to …

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 … constraint which generates increased indebtedness. The model can capture the two contrasting views associated with increased … indebtedness: the positive view, which links increased indebtedness to financial sector development and better insurance, and the …

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