ante risk assessment and derive risk premia for every balance sheet item where liabilities are differentiated according to … priority rights. We find that risk premia reflect both idiosyncratic risk and risk of contagion (network risk). Moreover, we … show that network risk magnifies the gap between the risk premia of equity and debt. We also perform comparative statics …

framework. We test the model’s predictions in a laboratory experiment. Both in theory and in the experiment diagnostic … uncertainty decreases the rate of efficient service provision and leads to less trade. In theory, insurance also decreases the …

asset prices and corporate default risk. Our model includes two empirically grounded nominal frictions: fixed nominal …

We model a risk-averse firm owner who wants to maximize the intertemporal expected utility of firm’s dividends. The … solved in a quasiexplicit form by computing both the optimal dividend and the optimal debt. Finally, we calibrate the model … particular, our results show that the optimal dividend is smooth over time and that leverage is predominantly constant over time …

. This paper calculates the possible size of such a green dividend of redistribution in 26 countries and concludes that, for …. If the redistribution introduces inefficiencies that lead to total income losses, the negative green dividend, otherwise …

show that: an increase in risk sharply reduces leverage and slightly decreases a MNC’s value; the cost of TP leads to a …

We propose a dynamic bank theory with a delayed loss recognition mechanism and a regulatory capital constraint at its …

In this article we use a stochastic model with one representative firm to study business tax policy under default risk …