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. Externalities arise because it can be privately optimal but socially suboptimal for firms to default given their limited liability … financial crises. Both constant and countercyclical debt tax schedules can correct overborrowing externalities. Contrary to …
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Externalities play a central role in most theories of economic growth. We argue that international externalities, in … have international knowledge externalities. When calibrated, the hybrid model does a surprisingly good job of generating …
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Rebalancing alpha is the excess return of a fixed-weight portfolio, which is regularly rebalanced, over its buy-and-hold counterpart. Two kinds of effects, both results of portfolio rebalancing, contribute to rebalancing alpha. The first is a volatility effect that arises from randomness of...
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