concerns. Furthermore, consumers are less likely to default on long-term relationship cards, premium credit cards, cards that … highlights the features distressed cardholders consider when choosing to default and contributes to understanding consumers …

Whereas recent studies on revolving lines of credit suggest a positive relationship between exposure at default and … default probability on the line, this paper considers the relationship between two financial instruments through the … simultaneous analysis of credit line utilization and default probability on a personal loan. We model both financial instruments …

default ratios in Spain for loans extended to the household sector. We estimate the models for two alternative definitions of … default and for two different loan categories. The dataset consists of a panel of 50 provinces and covers the period 1984 …-2009. The results of the models show that the dynamic behaviour of the default ratios of loans extended to Spanish households …

Strategic default behavior suggests that the default process is not only a matter of inability to pay. Economic costs … and benefits affect the incidence and timing of defaults. As with prior research, the authors find that people default … strategically as their home value falls below the mortgage value (exercise the put option to default on their first mortgage). While …

specify default, renegotiation and reorganization policies. Renegotiation entails a redistribution of social surplus, while … monitoring is too costly, renegotiation leads to reorganization, which resembles actual bankruptcy practice. We calibrate the …-trivial choice between alternative bankruptcy procedures. Given limited commitment and asymmetric information, financial contracts …

maturity rather than renegotiation of the principle in the case of loan default is due to the superior incentive properties of … the former. Specifically, borrowers have a greater incentive to avoid default under extended maturity because it reduces … open the possibility of foreclosure, it will be preferred to renegotiation as long as the dead weight loss from foreclosure …

Many theories study how firms'cost of funding depends on reorganization and liquidation in bankruptcy. However … instruments at the same time. We take advantage of the timing of the 2005-2006 Italian bankruptcy law and combine it with a unique …

information rents. We further show that the principal may use the option of renegotiation as a tool to implement actions that are …

How does renegotiation affect contracts between a principal and an agent subject to persistent private information and … moral hazard? This paper introduces a concept of renegotiation-proofness, which adapts to stochastic games the concepts of … weak renegotiation-proofness and internal consistency by exploiting natural comparisons across states. When the agent has …

incomplete and shaped by ex-post renegotiation. The financing of innovative firms must balance two goals. On the one hand, since … renegotiation, embeds a "put option" into the firm's capital structure. The put is exercised when liquidation is efficient, and it …