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Contract structure, risk sharing and investment choice
Fischer, Gregory - London School of Economics (LSE) - 2011
explanation: that the structure of existing microfinance contracts may discourage risky but high-expected return investments. To … financial contracts. I then test the predictions of this theory using a series of experiments with clients of a large …
Persistent link: https://www.econbiz.de/10010746368
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Equilibrium analysis, banking, contagion and financial fragility
Tsomocos, Dimitrios P. - London School of Economics (LSE) - 2003
This paper contains a general equilibrium model of an economy with incomplete markets (GEI) with money and default. The model is a simplified version of the real world consisting of a non-bank private sector, banks, a central bank, a government and a regulator. The model is used to analyse...
Persistent link: https://www.econbiz.de/10010884714
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Efficiency properties of rational expectations equilibria with asymmetric information
Rahi, Rohit; Gottardi, Piero - London School of Economics (LSE) - 2001
In this paper we provide a characterization of the welfare properties of rational expectations equilibria of economies in which, prior to trading, agents have some information over the realization of uncertainity. We study a model with asymmetrically informed agents, treating symmetric...
Persistent link: https://www.econbiz.de/10010745753
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Value of information in competitive economies with incomplete markets
Gottardi, Piero; Rahi, Rohit - London School of Economics (LSE) - 2007
A substantial literature addresses the negative eect on welfare of the release of information in a competitive market economy. We show that the value of information in this setting is typically positive if asset markets are suciently incomplete. More specically, for any competitive equilibrium...
Persistent link: https://www.econbiz.de/10010746178
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Financial super-markets: size matters for asset trade
Martin, Philippe; Rey, Helene - London School of Economics (LSE) - 2000
The paper presents a two-country macroeconomic model in which the number of financial assets is endogenous. Imperfect substitutability of assets and international transaction costs give a comparative advantage to large markets, because of demand effects. Agents have more incentives to undertake...
Persistent link: https://www.econbiz.de/10010746452
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Capital structure, investment, and fire sales
Gale, Douglas; Gottardi, Piero - London School of Economics (LSE) - 2014
We study a dynamic general equilibrium model in which firms choose their investment level and their capital structure, trading off the tax advantages of debt against the risk of costly default. The costs of bankruptcy are endogenously determined, as bankrupt firms are forced to liquidate their...
Persistent link: https://www.econbiz.de/10011170093
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Capital structure and investment dynamics with fire sales
Gale, Douglas; Gottardi, Piero - London School of Economics (LSE) - 2013
We study a general equilibrium model in which firms choose their capital structure optimally, trading off the tax advantages of debt against the risk of costly default. The costs of default are endogenous: bankrupt firms are forced to liquidate their assets, resulting in a fire sale if there is...
Persistent link: https://www.econbiz.de/10011163502
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EFFICIENT BARGAINS AND THE MCDONALD-SOLOW CONJECTURE.
CLARK, A. - London School of Economics (LSE) - 1989
Persistent link: https://www.econbiz.de/10005776295
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Congestion-dependent pricing and forward contracts for complementary segments of a communication network
Reiter, Miklós; Steinberg, Richard - London School of Economics (LSE) - 2012
cost uncertainty for users, it has been suggested that forward contracts could be used to manage these risks. We develop a … forward contracts would be adopted by service providers. Service on the upstream segment is provided by a single Internet … downstream network segment, with the advance possibility of entering into forward contracts with their users for some of their …
Persistent link: https://www.econbiz.de/10011071433
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Selectivity and the gender wage gap decomposition in the presence of a joint decision process
Schafgans, Marcia M. A.; Stelcnery, Morton - London School of Economics (LSE) - 2006
In this paper we revisit the gender decomposition of wages in the presence of selection bias. We show that when labor market participation decisions of couples are not independent, the sample selection corrections used in the literature have been incomplete (incorrect). We derive the appropriate...
Persistent link: https://www.econbiz.de/10010745220