The first wave of debt reschedulings started in the early 1980s, when a number of African and small Latin American countries began to experience liquidity problems. The number of countries rescheduling their debt suddenly jumped from 2 or 3 per year to 8 in 1980 and 11 in 1981. In 1983, 29...

The existence of equilibrium is a test of the internal consistency of an economic model. In any model with domestic moneys and dividend-yielding assets, the first question is: will money be dominated by assets in equilibrium? In cash-in-advance models domestic moneys always have positive...

This dissertation contains three essays concerning two broad areas, namely, optimal capital structure and risky assets modeling. In the first paper, we study corporate debt values, capital structure, and the term structure of interest rates in a unified framework. We employ numerical techniques...

With the emergence and expansion of credit derivatives, which are financial instruments that are based on corporate bonds and provide their holders a protection against default, the importance of estimating probabilities of default has reached an unprecedented level. We have developed a Bayesian...

This paper presents empirical examinations of three important aspects of stock returns: Gaussianity, linearity, and stationarity by applying time series tests based upon the higher-order spectra. If the stationary time series is Gaussian, the second order spectrum contains all the useful...

This dissertation consists of two papers on international capital movements. The first part theoretically analyzes the macroeconomic effects of restrictions imposed by official authorities on foreign investment. The main result from the theoretical model is that restrictions on foreign...