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Unemployment Risk and Debt Contract Design

Armstrong, Chris - 2018

.e., profitability) ratios rather than credit ratings. Overall, our study demonstrates how the design of debt contracts changes in …

Persistent link: https://www.econbiz.de/10012907290

Optimal Lending Contract with Uncertainty Shocks

Villacorta, Alonso - 2014

behavior. A line of credit appears in the optimal long term contract similar to (DeMarzo and Fishman, 2007). The novelty of the … contract is that the credit limit varies over time, as a function of the state of volatility. Credit limit does not vary … monotonically over firms. When uncertainty increases, credit limits are reduced for highly constraint firms, because the frictions …

Persistent link: https://www.econbiz.de/10013060348

Unemployment risk and debt contract design

Yehuda, Nir; Armstrong, Christopher; Cohen, Daniel; … - In: The accounting review : a publication of the American … 98 (2023) 6, pp. 467-504

Persistent link: https://www.econbiz.de/10014390414

Optimal dynamic risk sharing when enforcement is a decision variable

Koeppl, Thorsten V. - 2003

Societies provide institutions that are costly to use, but able to enforce long-run relationships. We study the optimal decision problem of using self-governance for risk sharing or governance through enforcement provided by these institutions. Third-party enforcement is modelled as a costly...

Persistent link: https://www.econbiz.de/10009635888