This Paper provides a sufficient condition for the existence and uniqueness of equilibrium in monotone pure strategies … response correspondence is a contraction mapping. This ensures equilibrium existence and uniqueness. Our approach allows us to … establish these results in a wide range of applications, including cases where there are no existing existence results. …

one-period debt and can renege on its obligations by suffering a stochastic default cost. When faced with a credible … default threat, creditors can make a take-it-or-leave-it debt haircut offer to the sovereign. The risk of renegotiation is …

assess and price the risk of default. In order to analyse default risk in the macroeconomy, a simple general equilibrium … model with banks and financial intermediation is constructed in which default-risk can be priced. It is shown how the credit … spread can be attributed largely to the risk of default and how excess loan creation may emerge due different attitudes to …

. Similarly, although firms with higher cash reserves are less likely to default over short horizons, endogenously determined … liquidity may be related positively to the longer-term probability of default. Our empirical analysis confirms these predictions …

This Paper analyses corporate bond valuation and optimal call and default rules when interest rates and firm value are …

leverage episodes have been associated with slower economic growth and a higher incidence of default or, more generally …