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A Continuous-Time Agency Model of Optimal Contracting and Capital Structure

DeMarzo, Peter M. - 2004

We consider a principal-agent model in which the agent needs to raise capital from the principal to finance a project. Our model is based on DeMarzo and Fishman (2003), except that the agent's cash flows are given by a Brownian motion with drift in continuous time. The difficulty in writing an...

Persistent link: https://www.econbiz.de/10012468076

Measuring the Impact of Own and Others’ Experience on Project Costs in the U.S. Wind Generation Industry

Anderson, John W. - 2019

We investigate the relationship between accumulated experience completing wind power projects and the cost of installing wind projects in the U.S. from 2001-2015. Our modeling framework disentangles accumulated experience from input price changes, scale economies, and exogenous technical change;...

Persistent link: https://www.econbiz.de/10012480060

Maximizing the Impact of Climate Finance : Funding Projects or Pilot Projects?

Kotchen, Matthew J. - 2017

This paper contributes to the understanding of how to maximize the impact of publicly provided climate finance to leverage the private sector. Agencies seeking to promote private investment in support of climate change mitigation and adaptation may have a choice between subsidizing projects or...

Persistent link: https://www.econbiz.de/10012455657

Is the Emphasis on Cofinancing Good for Environmental Multilateral Funds?

Kotchen, Matthew J.; Vogt, Andrew - National Bureau of Economic Research - 2023

International environment and development agencies increasingly emphasize external cofinancing when selecting projects to fund. This paper considers whether the emphasis on cofinancing helps promote institutional objectives, or creates perverse and inefficient incentives. We present a model of...

Persistent link: https://www.econbiz.de/10014322845

Contingent Credit Under Stress

Acharya, Viral V.; Jager, Maximilian; Steffen, Sascha - National Bureau of Economic Research - 2023

Over the past two decades, banks have increasingly focused on offering contingent credit in the form of credit lines as a primary means of corporate borrowing. We review the existing body of research regarding the rationales for banks' provision of liquidity insurance in the form of credit...

Persistent link: https://www.econbiz.de/10014437040

The Role of Collateralized Household Debt in Macroeconomic Stabilization

Campbell, Jeffrey R. - 2005

Market innovations following the financial reforms of the early 1980s relaxed collateral constraints on household … shortly thereafter. The model combines collateral constraints on households with heterogeneity of thrift in a calibrated … collateral constraints can explain a large fraction of the actual volatility decline in hours worked, output, household debt, and …

Persistent link: https://www.econbiz.de/10012467353

A Theory of Housing Collateral, Consumption Insurance and Risk Premia

Lustig, Hanno - 2004

In a model with housing collateral, a decrease in house prices reduces the collateral value of housing, increases … household exposure to idiosyncratic risk, and increases the conditional market price of risk. This collateral mechanism can …. The increase of the conditional equity premium and Sharpe ratio when collateral is scarce in the model matches the …

Persistent link: https://www.econbiz.de/10012467732

Housing Collateral, Consumption Insurance and Risk Premia : An Empirical Perpective

Lustig, Hanno - 2003

In a model with housing collateral, the ratio of housing wealth to human wealth shifts the conditional distribution of … asset prices and consumption growth. A decrease in house prices reduces the collateral value of housing, increases household …

Persistent link: https://www.econbiz.de/10012468738

Collateral Damage : The Impact of Foreclosures on New Home Mortgage Lending in the 1930s

Fishback, Price - 2018

Foreclosures led to severe disruptions in home mortgage lending during the recent Great Recession and the Great Depression of the 1930s. It is difficult to measure these impacts in the modern market where origination, funding and servicing are separated within complex lending structures, but...

Persistent link: https://www.econbiz.de/10012480897

Money Markets, Collateral and Monetary Policy

De Fiore, Fiorella - 2018

unsecured lending and substantial increases in haircuts on posted collateral. This paper seeks to understand the implications of …

Persistent link: https://www.econbiz.de/10012480970