This paper proposes an empirical analysis of the sensitivity of Discrete Choice Model (DCM) to the size of the spatial units used as choice set (which relates to the well-known Modifiable Areal Unit Problem). Job's location choices in Brussels (Belgium) are used as the case study. DCMs are...

We examine the relationship between leverage and the weighted-average cost of capital (WACC) for U.S. banks. Ignoring tax effects, leverage appears to have virtually no impact on the WACCs of too-big-to-fail banks. We find significant differences in this relationship across different...

This paper measures central counterparty (CCP) clearing-network risk as the probability that the maximum cleared exposure of a CCP to an individual clearing member is atypically large. Our analytical derivation of this probability uses the large deviations theory of rare events, and shows that...