Threat of entry and debt maturity: evidence from airlines
... (2007)), asset liquidation values (Benmelech (2009)), and changes in the supply of long-term government bonds (Greenwood, Hanson, and Stein (2010); Badoer and James (2015)). My results suggest that the threat of entry is an additional economically relevant determinant of the structure of debt maturi ...
... (2007)), asset liquidation values (Benmelech (2009)), and changes in the supply of long-term government bonds (Greenwood, Hanson, and Stein (2010); Badoer and James (2015)). My results suggest that the threat of entry is an additional economically relevant determinant of the structure of debt maturi ...
Corporate Leverage and Currency Crises - S-WoPEc
... use. So the real income accruing to the economy is always Xs if the safe project has been chosen. The real income for the economy after a currency depreciation is X , but the opportunity cost of depreciation is the loss of income assets that would be brought in alternative use, I2 . Since the need o ...
... use. So the real income accruing to the economy is always Xs if the safe project has been chosen. The real income for the economy after a currency depreciation is X , but the opportunity cost of depreciation is the loss of income assets that would be brought in alternative use, I2 . Since the need o ...
Fiscal Austerity during Debt Crises
... Default allows the government to avoid paying the debt and have more resources for domestic consumption. In fact, defaulting on debt b is optimal only if under no default, the economy must experience capital outflows, −b + q(z, b0 )b0 < 0. In this model, however, default relaxes two constraints: the ...
... Default allows the government to avoid paying the debt and have more resources for domestic consumption. In fact, defaulting on debt b is optimal only if under no default, the economy must experience capital outflows, −b + q(z, b0 )b0 < 0. In this model, however, default relaxes two constraints: the ...
sovereign debt, domestic banks and the provision of public liquidity
... provision of public liquidity can be undermined after a sovereign default and this in turn serves as a commitment device to repay for the government. This paper also contributes to the theoretical literature on the internal costs of default. Gennaioli et al. (2014), Basu (2009) and Mengus (2013) pro ...
... provision of public liquidity can be undermined after a sovereign default and this in turn serves as a commitment device to repay for the government. This paper also contributes to the theoretical literature on the internal costs of default. Gennaioli et al. (2014), Basu (2009) and Mengus (2013) pro ...
Government Deficits and Debt - The Office of the Auditor General in
... of Canada agencies, the International Monetary Fund, credit agency reports, bank reports, and other sources of Canadian and international research and statistics. This Report relies on data and information from secondary sources and makes no representations on its accuracy or completeness. ...
... of Canada agencies, the International Monetary Fund, credit agency reports, bank reports, and other sources of Canadian and international research and statistics. This Report relies on data and information from secondary sources and makes no representations on its accuracy or completeness. ...
Debt Valuation, Renegotiation, and Optimal Dividend Policy
... the bargaining process. During the period of such strategic debt service there is no tax benefit. But when the fortunes improve and the contractual debt service payments are resumed, the tax benefit is assumed to be restored. Under this formulation the presence of potential future tax benefits will dri ...
... the bargaining process. During the period of such strategic debt service there is no tax benefit. But when the fortunes improve and the contractual debt service payments are resumed, the tax benefit is assumed to be restored. Under this formulation the presence of potential future tax benefits will dri ...
Banking Relationships and REIT Capital Structure - DataPro
... least one reason for REITs to use debt is to obtain financial liquidity through banks to take quick action in property acquisitions. Third, the finding that REITs with banking relationships have lower leverage supports Brown and Marble (2007), which shows that firms with lower secured debt ratios al ...
... least one reason for REITs to use debt is to obtain financial liquidity through banks to take quick action in property acquisitions. Third, the finding that REITs with banking relationships have lower leverage supports Brown and Marble (2007), which shows that firms with lower secured debt ratios al ...
"International Reserves and Rollover Risk"
... (iii) improvements in policy frameworks that reduced possible impatience bias of policy makers, and (iv) an increase in the frequency and intensity of global disruptions to international financial markets, which became apparent after the East Asian financial crises. These developments also imply lo ...
... (iii) improvements in policy frameworks that reduced possible impatience bias of policy makers, and (iv) an increase in the frequency and intensity of global disruptions to international financial markets, which became apparent after the East Asian financial crises. These developments also imply lo ...
A New Structure for US Federal Debt
... liquid: bid-‐ask spreads and other trading costs would decline, and price impact (how much prices go down if you try to buy or sell a large amount) would decline. Fixed-‐value debt will become esp ...
... liquid: bid-‐ask spreads and other trading costs would decline, and price impact (how much prices go down if you try to buy or sell a large amount) would decline. Fixed-‐value debt will become esp ...
Determinants of Firm`s Financial Leverage: A Critical
... the journals into three categories: (i) Core, (i i) Non Core, and (i ii) Othe rs. We understand that our sample is the true representative of the population to reflect the state of research in determining the variables affecting the firm’s leverage. We reviewed articles in the journals through the E ...
... the journals into three categories: (i) Core, (i i) Non Core, and (i ii) Othe rs. We understand that our sample is the true representative of the population to reflect the state of research in determining the variables affecting the firm’s leverage. We reviewed articles in the journals through the E ...
The size and composition of government debt in - ECB
... government debt ratios, as a number of countries witnessed major increases in their government debt ratios as a consequence of the Second World War. Government debt ratios also increased in association with the oil crises in the 1970s and the generalisation of social welfare policies in Europe since ...
... government debt ratios, as a number of countries witnessed major increases in their government debt ratios as a consequence of the Second World War. Government debt ratios also increased in association with the oil crises in the 1970s and the generalisation of social welfare policies in Europe since ...
Fiscal Vulnerabilities and Risks from Local Government
... Rationale. Infrastructure investment has become local governments' main strategy to foster growth and a preferred countercyclical tool, especially during the global crisis. However, local infrastructure spending has mainly been financed off-budget, either through land sales or Local Government Finan ...
... Rationale. Infrastructure investment has become local governments' main strategy to foster growth and a preferred countercyclical tool, especially during the global crisis. However, local infrastructure spending has mainly been financed off-budget, either through land sales or Local Government Finan ...
Belief Regimes and Sovereign Debt Crises
... Interestingly, shocks to creditor wealth are relatively unimportant in generating large spikes in spreads. For high levels of debt, a drop in creditor wealth raises the risk premium charged on sovereign bonds and generates an increase in spreads. However, for moderate levels of debt, spreads may act ...
... Interestingly, shocks to creditor wealth are relatively unimportant in generating large spikes in spreads. For high levels of debt, a drop in creditor wealth raises the risk premium charged on sovereign bonds and generates an increase in spreads. However, for moderate levels of debt, spreads may act ...
NBER WORKING PAPER SERIES PUBLIC DEBT MANAGEMENT IN BRAZIL Francesco Giavazzi Alessandro Missale
... This paper derives the optimal composition of the Brazilian public debt by looking at the relative impact of the risk and cost of alternative debt instruments on the probability of missing the stabilization target. This allows to price risk against the expected cost of debt service and thus to find ...
... This paper derives the optimal composition of the Brazilian public debt by looking at the relative impact of the risk and cost of alternative debt instruments on the probability of missing the stabilization target. This allows to price risk against the expected cost of debt service and thus to find ...
From Debt Collection to Relief Provision: 60 Years of Official Debt
... was never moved to Washington. On the contrary, a permanent secretariat housed in the French Treasury was created in the late 1970s, which somewhat institutionalized the Paris Club (Rieffel, 1985). During the first two decades of its existence, the Paris Club was a relatively obscure forum with limi ...
... was never moved to Washington. On the contrary, a permanent secretariat housed in the French Treasury was created in the late 1970s, which somewhat institutionalized the Paris Club (Rieffel, 1985). During the first two decades of its existence, the Paris Club was a relatively obscure forum with limi ...
Domestic Government Debt Structure, Risk Characteristics
... countries with low increases in inflation but have large amounts of domestic debt(Korea and Malaysia), and some with low inflation but with small debt markets( Argentina and Hong-Kong). There are still others like Nigeria with large increases in inflation but with large amounts of domestic debt. Out ...
... countries with low increases in inflation but have large amounts of domestic debt(Korea and Malaysia), and some with low inflation but with small debt markets( Argentina and Hong-Kong). There are still others like Nigeria with large increases in inflation but with large amounts of domestic debt. Out ...
GambaTriantis2013HEC.. - University of Warwick
... (2005), Mello and Parsons (1992), Moyen (2007)), a specified maturity schedule for debt (Leland (1998), Parrino and Weisbach (1999)), or restrictions on the issuance of new debt (Titman and Tsyplakov (2007)). While a flexible financing policy could potentially help to mitigate investment distortions ...
... (2005), Mello and Parsons (1992), Moyen (2007)), a specified maturity schedule for debt (Leland (1998), Parrino and Weisbach (1999)), or restrictions on the issuance of new debt (Titman and Tsyplakov (2007)). While a flexible financing policy could potentially help to mitigate investment distortions ...
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... debt bubble will not default and will fulfill all their covenants, which are built into deals to secure the lenders’ money. Surprisingly, there are also some companies that were financed at the peak of the bubble that will not default in the next few years because their deals involve so-called coven ...
... debt bubble will not default and will fulfill all their covenants, which are built into deals to secure the lenders’ money. Surprisingly, there are also some companies that were financed at the peak of the bubble that will not default in the next few years because their deals involve so-called coven ...
Dynamic Monitoring of Financial Intermediaries with Subordinated
... state of the stock market, the bond market, the Treasury yield curve, the state of the business cycle, etc. The idiosyncratic component is associated with the special characteristics of the security, such as embedded options, liquidity of the particular issue, etc, plus it will contain information a ...
... state of the stock market, the bond market, the Treasury yield curve, the state of the business cycle, etc. The idiosyncratic component is associated with the special characteristics of the security, such as embedded options, liquidity of the particular issue, etc, plus it will contain information a ...
mmi13 Watzka 19074706 en
... level, aggregate demand will fall. Second, the deleveraging needs of households may also be a function of changing perceptions of lifetime income or wealth. For instance, housing prices, which determine the value of one of the most important assets for most households, almost certainly affect househ ...
... level, aggregate demand will fall. Second, the deleveraging needs of households may also be a function of changing perceptions of lifetime income or wealth. For instance, housing prices, which determine the value of one of the most important assets for most households, almost certainly affect househ ...
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... However, premature liquidation is costly: Liquidation of an amount of l k in period 1 only yields l units, where 1 . The investor has no own resources, but may borrow from abroad. The required resources k can be split between ST borrowing (d) and LT borrowing (k-d). Assume for simplicity that ...
... However, premature liquidation is costly: Liquidation of an amount of l k in period 1 only yields l units, where 1 . The investor has no own resources, but may borrow from abroad. The required resources k can be split between ST borrowing (d) and LT borrowing (k-d). Assume for simplicity that ...
OPTIMAL TAXATION WITH ENDOGENOUS DEFAULT UNDER INCOMPLETE MARKETS
... faces exogenous offers to pay a fraction of the defaulted debt that arrive at an exogenous rate.5 The government has the option to accept the offer – and thus exit financial autarky – or to stay in financial autarky until a new offer comes. Since these offers may not arrive immediately, during tempo ...
... faces exogenous offers to pay a fraction of the defaulted debt that arrive at an exogenous rate.5 The government has the option to accept the offer – and thus exit financial autarky – or to stay in financial autarky until a new offer comes. Since these offers may not arrive immediately, during tempo ...
The fiscal space in emerging market economies
... limit is not defined, which means that the paths of the debt ratio are explosive. Other authors such as Zandi et al (2011), Fournier and Fall (2015) and Pommier (2015) have used this methodology to estimate the debt limit for other samples of advanced economies. In the second approach, a threshold o ...
... limit is not defined, which means that the paths of the debt ratio are explosive. Other authors such as Zandi et al (2011), Fournier and Fall (2015) and Pommier (2015) have used this methodology to estimate the debt limit for other samples of advanced economies. In the second approach, a threshold o ...
Crunch Time: Fiscal Crises and the Role of Monetary Policy*
... mechanics of debt accumulation and economic growth, we calculate the level of the primary government surplus that would be necessary to keep debt from continually growing as a percentage of GDP. We argue that if this required surplus is sufficiently far from a country’s historical experience and po ...
... mechanics of debt accumulation and economic growth, we calculate the level of the primary government surplus that would be necessary to keep debt from continually growing as a percentage of GDP. We argue that if this required surplus is sufficiently far from a country’s historical experience and po ...
Discussion Paper
... Early contributions in the field of state-contingent development financing focused on the case of commodity-linked bonds, work which provides much of the theoretical foundations for the analysis of GDP debt indexation. Commodity-linked bonds are defined as ‘a bond whose redemption value is linked t ...
... Early contributions in the field of state-contingent development financing focused on the case of commodity-linked bonds, work which provides much of the theoretical foundations for the analysis of GDP debt indexation. Commodity-linked bonds are defined as ‘a bond whose redemption value is linked t ...