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We study rollover risk and collateral value in a dynamic asset pricing model with endogenous debt financing by … news. We demonstrate the optimality of the maximum riskless short-term debt financing for optimistic borrowers even in the …
Persistent link: https://www.econbiz.de/10013108308
We study rollover risk and collateral value in a dynamic asset pricing model with endogenous debt financing by … news. We demonstrate the optimality of the maximum riskless short-term debt financing for optimistic borrowers even in the …
Persistent link: https://www.econbiz.de/10012460724
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This paper studies the welfare properties of competitive equilibria in an economy with financial frictions hit by aggregate shocks. In particular, it shows that competitive financial contracts can result in excessive borrowing ex ante and excessive volatility ex post. Even though, from a...
Persistent link: https://www.econbiz.de/10012773218
turnover -- A theory of Minsky super-cycles and financial crises -- Inside debt and economic growth -- A monetary policy … macroeconomics of financialization: stages of development approach -- The simple analytics of debt-driven business cycles … -- Deflation and inflation dynamics with debt -- Herd behavior: safety in numbers -- Short-termism: the problem of managerial …
Persistent link: https://www.econbiz.de/10010189659