Securitization of LDC debt would significantly aid the international debt problem by increasing liquidity and expanding the range of investors. Securitization is problematic, however, in large part due to sovereign risks involved. At present sovereign risks, commodity price risks and currency...

We study the relationship between liquid asset holding and the pattern of share ownership and control structures within the firm. We explore these issues using a data set of Belgian firms that is particularly well suited to studying the institutions of control oriented finance. The data include...

This paper is a reflection on the problems posed by the structural transformation of Eastern European economies. It asks : how can the transformation to a market economy be reconciled with a desire for a stable economic environment ? The proposed paradigm is that of multi-market, disequilibrium...

We study a continuous time model of a levered firm with fixed assets generating a cash flow that fluctuates with business conditions. Since external finance is costly, the firm holds a liquid (cash) reserve to help survive periods of poor business conditions. Holding liquid assets inside the...

This paper studies the design and valuation of debt contracts in a general dynamic setting under uncertainty. By incorporating some insight of the recent corporate finance literature into a valuation framework, we obtain a model which seems promising for the empirical study of pricing of risky...

In this paper we employ the theory of the term structure of interest rates and the pricing of interest contingent contracts to determine the fair value of insurance for depository institutions. The balance sheet of a bank is taken to consist of long and short positions in various fixed income...

This paper reports the result of three separate case studies, each one based on extended field work. The studies are unified by the common issue they seek to investigate : In the passage from a system extensive controls to a market-oriented system an economy may be exposed for the first time to...

We solve numerically for stationary rational expectations equilibria of a two-country nonlinear model of a storable commodity. With constant tariffs, price volatilities in both countries increase in the tariff rate of one country (‘the EC’) uses a variable import levy and export subsidy to...