The purpose of this paper is lo analyze the incidence of firing costs, specifically severance payments, on the path of wages, job length, and job creation over an intertemporal context. This was an important topic in the discussion about labor reforms in

The modeling of the term structure of interest rates has been the focus of attention of several studies in the fields of applied and theoretical finance. Numerous models, which can be broadly classified as equilibrium models and no-arbitrage models, have

Abstract: In the standard Weighted Average Cost of Capital (WACC) applied to the free cash flow (FCF), we assume that the cost of debt is the market, unsubsidized rate. With debt at the market rate and perfect capital markets, debt only creates value in the presence of taxes through the tax...

In the Weighted Average Cost of Capital (WACC) applied to the free cash flow (FCF), we assume that the cost of debt is the market, unsubsidized rate. With debt at the market rate and perfect capital markets, debt only creates value in the presence of taxes through the tax shield. In some cases,...

This paper presents two applications of Extreme Value Theory (EVT) to financial markets: computation of value at risk and assets returns dependence under extreme events (i.e. tail dependence). We use a sample comprised of the United States, Europe, Asia, and Latin America. Our main findings are...

We present a static general equilibrium model of an economy with agents with heterogeneous wealth and endogenous credit constraints created by partial loan recovery rates. Higher loan recovery rates and better bankruptcy protection increase output and credit penetration, while the former raises...

Between the 1970's and the 1980's, the market of derivatives flourished. Forwards, futures and options began to be regularly traded. According to information gathered by The Bank of International Settlements, between January and April 1998, the value of over-the-counter (OTC) positions...

Between the 1970's and the 1980's, the derivatives market flourished. Forwards, futures and options began to be regularly traded. According to information gathered by The Bank of International Settlements, at the end of April 2001 the value of over the counter(OTC) positions outstanding was over...