discrete interdependent risks with heterogeneous agents. There is a threat of an event that can only happen once, and the risk … depends on actions taken by others. Any agent's incentive to invest in managing the risk depends on the actions of others …. Security problems at airlines and in computer networks come into this category, as do problems of risk management in …

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

with greater wealth-at-risk are more likely to hold health insurance. The implicit insurance from bankruptcy distorts the …

Can banks maintain their advantage as liquidity providers when they are heavily exposed to a financial crisis? The … liquidity insurer is not one of the passive recipient, but of an active seeker, of deposits. We find that banks facing a funding … liquidity demand shocks (as measured by their unused commitments, wholesale funding dependence, and limited liquid assets), as …

We estimate the pricing of sovereign risk for sixty countries based on fiscal space (debt/tax; deficits/tax) and other … and economically important determinants of market-based sovereign risk. Although the explanatory power of fiscal space … emergence of TED spread as a key pricing factor. However, risk-pricing of the South-West Eurozone Periphery countries is not …

structures with higher bankruptcy risk. Further analysis suggests that the capital structures of smaller firms with lower asset … shocks, making them more susceptible to bankruptcy risk …

cope with risk. We also find evidence of a "pecking order" of coping methods in which savings appears to be first in the …

This paper examines the movements of the Distance to Default (DD), a market-based measure of corporate default risk, of …