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Occupational Classifications : A Machine Learning Approach

Ikudo, Akina - 2018

, classification has been done manually. If it were possible to combine new computational tools and administrative wage records to …

Persistent link: https://www.econbiz.de/10012911708

Should Derivatives Be Privileged in Bankruptcy?

Bolton, Patrick - 2011

Derivative contracts, swaps, and repos enjoy "super-senior" status in bankruptcy: they are exempt from the automatic stay on debt and collateral collection that applies to virtually all other claims. We propose a simple corporate finance model to assess the effect of this exemption on firms'...

Persistent link: https://www.econbiz.de/10013118249

A Model of Mortgage Default

Campbell, John Y. - 2011

This paper solves a dynamic model of a household's decision to default on its mortgage, taking into account labor income, house price, inflation, and interest rate risk. Mortgage default is triggered by negative home equity, which results from declining house prices in a low inflation...

Persistent link: https://www.econbiz.de/10013119572

Firm Heterogeneity, Endogenous Entry, and the Business Cycle

Ottaviano, Gianmarco I.P. - 2011

This paper investigates the role that the entry and exit of heterogeneous firms plays in shaping aggregate fluctuations in economic activity. In so doing, it develops a dynamic stochastic general equilibrium model in which procyclical entry and countercyclical exit along a real business cycle...

Persistent link: https://www.econbiz.de/10013120283

Are Corporate Default Probabilities Consistent with the Static Tradeoff Theory?

Hovakimian, Armen - 2011

Default probability plays a central role in the static tradeoff theory of capital structure. We directly test this … theory by regressing the probability of default on proxies for costs and benefits of debt. Contrary to predictions of the … theory, firms with higher bankruptcy costs, i.e., smaller firms and firms with lower asset tangibility, choose capital …

Persistent link: https://www.econbiz.de/10013121593

Cash Holdings and Credit Risk

Acharya, Viral V. - 2011

Intuition suggests that firms with higher cash holdings are safer and should have lower credit spreads. Yet empirically, the correlation between cash and spreads is robustly positive and higher for lower credit ratings. This puzzling finding can be explained by the precautionary motive for...

Persistent link: https://www.econbiz.de/10013125920

Bankruptcy Spillovers

Bernstein, Shai - 2017

How do different bankruptcy approaches affect the local economy? Using U.S. Census microdata at the establishment level, we explore the spillover effects of reorganization and liquidation on geographically proximate firms. We exploit the random assignment of bankruptcy judges as a source of...

Persistent link: https://www.econbiz.de/10012963165

Dynamic Debt Maturity

He, Zhiguo - 2016

A firm chooses its debt maturity structure and default timing dynamically, both without commitment. Via the fraction of newly issued short-term bonds, equity holders control the maturity structure, which affects their endogenous default decision. A shortening equilibrium with accelerated default...

Persistent link: https://www.econbiz.de/10013000527

Insolvency Resolution and the Missing High Yield Bond Markets

Becker, Bo - 2013

-country and using insolvency reforms as natural experiments. Our empirical estimates suggest that a one …

Persistent link: https://www.econbiz.de/10013076562

Optimal Taxation in the Presence of Bailouts

Panageas, Stavros - 2010

The termination of a representative financial firm due to excessive leverage may lead to substantial bankruptcy costs. A government in the tradition of Ramsey (1927) may be inclined to provide transfers to the firm so as to prevent its liquidation and the associated deadweight costs. It is shown...

Persistent link: https://www.econbiz.de/10013150643

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