We develop a model of financially distressed firm to analyze the implications of a bank debt restructuring when the operational characteristics of the firm's project for the post-distress period are endogenously determined as part of the workout.

This paper develops a model of budgeting in hierarchical organizations. Each agent (manager) in the hierarchy receives a budget for a task; based on his own information, the agent assigns tasks and budgets to his subordinates, who, in turn, do the same for their subordinates and so forth. Each...

This paper examines the changes in costs of mental health and substance abuse services ina carve out program initiated in 1993 by the Group Insurance Commission (GIC) of the Commonwealth of of Massachusetts, and related those changes to initiatives in the contract the GIC agreed upon with the...

In recent years numerous employers have reformed their health plan by changing the structure of employee contributions to premiums across different plans and across different rate classes (e.g., single versus family). This paper develops the notion of "premium cost sharing", in which the focus...

We study the investment incentives of a regulated, incumbent firm in a deregulation process. The regulator cannot commit to a long-term regulatory policy, and investment decisions are taken before optimal regulatory policies are imposed. We characterize the regulated incumbent's incentive to...