This paper explores the implications of alternative contracting arrangements in an industry comprised of firms of different sizes which are paired with managers with different talents and who exert effort that cannot be monitored by investors. Assuming a technology which exhibits strong...

This paper studies the design and valuation of debt contracts in a general dynamic setting under uncertainty. We incorporate some insights of the recent corporate finance literature into a valuation framework. The basic framework is an extensive form game determined by the terms of a debt...

We assess the economic and institutional factors that have driven the growth of debt in China. We ask whether there is a clear strategy for managing the risk that such debt levels pose and assess the likelihood that policy actions will prove successful. In particular, we explain how much of the...