Antinolfi, Gaetano; Carapella, Francesca; Carli, Francesco - In: Theoretical economics : TE ; an open access journal in … 17 (2022) 1, pp. 185-217
not, they may prefer bilateral clearing either to prevent strategic default or to optimize the allocation of costly …This paper studies the optimal clearing arrangement for bilateral financial contracts in which an assessment of …, at a cost, about the commitment of their borrowers, which affects the assessment of counterparty risk. Clearing through a …