König, Philipp Johann; Pothier, David - 2014
proposes a model of equilibrium maturity choice with asymmetric information and endogenous roll-over risk. We show that in the …-over risk in order to minimize price distortions. Short-term financing is socially desirable when banks' capacity to repay short … downgrade face sufficiently high roll-over risk, the equilibrium maturity structure approaches the constrained efficient …