Along the lines of the option theory applied lo project evaluation introduced by Brennan & Schartz in 1985, this paper analyses how the typical procedure for selecting power plant investments -based on cost-efficiency criteria- might be enhanced with the

En este trabajo se analiza lo que ha llegado a ser la manera tradicional de cálculo de la tasa social de descuento, basada en el enfoque Harberger. Se argumenta que deberían agregarse algunos refinamientos a las fórmulas de cálculo tradicionales, originadas en consideraciones de riesgo y en...

El problema de duración se refiere al momento óptimo de cortar los árboles que han estado creciendo por años, el que es metodológicamente parecido al de cuánto añejar el vino o en qué edad vender los conejos. Este es un clásico problema de evaluación de proyectos que pareciera haberse...

This note considers the role debt-equity conversions and NPL securitization can play in addressing excessive corporate debt in China, and the corresponding burden on banks of impaired assets. It finds that such techniques can play a role, but getting their design right is critical, as is nesting...

To date, the use of empirical data in insolvency law analysis has been sporadic. This paper provides a conceptual framework for the use of data to assess the effectiveness and efficiency of insolvency systems. The paper analyzes the existing sources of data on insolvency proceedings, including...

This note weighs the merits of a capital market union (CMU) for Europe, identifies major obstacles in its path, and recommends a set of carefully targeted policy actions. European capital markets are relatively small, resulting in strong bank-dependence, and are split sharply along national...

To stabilize and bring down nonperforming loans (NPLs) in the Italian banking system, the Italian authorities have been implementing a number of reforms, aimed among others at speeding up insolvency and enforcement proceedings, strengthening bank corporate governance, cleaning up balance sheets,...