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Credit when you need it
Collier, Benjamin L.; Hartley, Daniel A.; Keys, Benjamin J. - 2024
significantly reduces severe financial distress, decreasing the likelihood of filing for bankruptcy by 61% in the three years …
Persistent link: https://www.econbiz.de/10015053784
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Differentiation and risk aversion in imperfectly competitive labor markets
Bannier, Christina E.; Feess, Eberhard; Packham, Natalie; … - 2020
This paper examines the effect of imperfect labor market competition on the efficiency of compensation schemes in a setting with moral hazard and risk-averse agents who have private information on their ability. Two heterogenous firms - characterized by vertical, respectively horizontal,...
Persistent link: https://www.econbiz.de/10012253127
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Robust contracting under common value uncertainty
Auster, Sarah - In: Theoretical economics : TE ; an open access journal in … 13 (2018) 1, pp. 175-204
all possible probability distributions of quality is a screening menu that separates all types, whereas the optimal …
Persistent link: https://www.econbiz.de/10011855861
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Coordinated Strategic Defaults and Financial Fragility in a Costly State Veri fication Model
Carrasco, Vinicius - 2015
Diversification through a financial intermediary has the benefit of transforming loans that need costly monitoring into bank deposits that do not. We show, however, that financial intermediation in a costly state verification model has a cost not yet analyzed: it allows for the existence of...
Persistent link: https://www.econbiz.de/10013017966
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Microcredit Contracts, Risk Diversifi cation and Loan Take-Up
Attanasio, Orazio - 2016
We study theoretically and empirically the demand for micro-credit under different liability arrangements and risk environments. A simple theoretical model shows that the demand for joint-liability loans can exceed that for individual-liability loans when risk-averse borrowers value their...
Persistent link: https://www.econbiz.de/10012991650
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Household Credit and Local Economic Uncertainty
Di Maggio, Marco - 2017
This paper investigates the impact of uncertainty on consumer credit outcomes. We develop a local measure of economic uncertainty capturing county-level labor market shocks. We then exploit microeconomic data on mortgages and credit-card balances together with the crosssectional variation...
Persistent link: https://www.econbiz.de/10012950501
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The Effect of Rollover Risk on Default Risk : Evidence from Bank Financing
Chiu, Wan-Chien - 2015
We study the effect of rollover risk on the risk of default using a comprehensive database of U.S. industrial firms … risk effect on the risk of default. A one standard deviation increase in the rollover risk variable leads to a 3 ….3% increase in default rates. We present evidence revealing the extent to which bank financing dependence affects the influence of …
Persistent link: https://www.econbiz.de/10013033588
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The Effect of Rollover Risk on Default Risk : Evidence from Bank Financing
Chiu, Wan-Chien - 2015
This empirical examination of the effect of rollover risk on default risk uses a database of U.S. industrial firms … rollover risk effect on default risk. This paper investigates the impact of rollover risk on default risk, by asking two … questions: (1) Do firms with high rollover risk experience greater default probabilities than otherwise comparable firms that do …
Persistent link: https://www.econbiz.de/10013028447
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CDS as Insurance : Leaky Lifeboats in Stormy Seas
Stephens, Eric - 2011
What market features of Credit Defaults Swaps (CDS) exacerbate counterparty risk? To answer this, we formulate a model which elucidates key differences between these and traditional insurance contracts. First, we allow for insurer insolvency with asymmetric information as to its probability. We...
Persistent link: https://www.econbiz.de/10013127453
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Uncertainty under hyperbolic discounting : the cost of untying your hands
Alcocer, Christian Diego; Ortegón, Julián; Roa, Alejandro - In: Journal of economics, finance & administrative science 24 (2019) 48, pp. 176-193
Purpose The relevance of present consumption bias on personal finance has been confirmed in several studies and has important theoretical and practical implications. It has important, measurable implications when analyzing commitment or self-control, adherence to healthy habits (e.g. exercising...
Persistent link: https://www.econbiz.de/10012128806