Browsing ECO Working Papers by Subject "G33"
Now showing items 1-5 of 5
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Title:Capital structure and investment dynamics with fire sales Author(s):GALE, Douglas; GOTTARDI, PieroDate:2013Type:Working PaperSeries/Number:EUI ECO; 2013/09Abstract:We study a general equilibrium model in which firms choose their capital structure optimally, trading off the tax advantages of debt against the risk of costly default. The costs of default are endogenous: bankrupt firms ... -
Title:Deposits and bank capital structure Author(s):ALLEN, Franklin; CARLETTI, ElenaDate:2013Type:Working PaperSeries/Number:EUI ECO; 2013/03Abstract:In a model with bankruptcy costs and segmented deposit and equity markets, we endogenize the choice of bank and firm capital structure and the cost of equity and deposit finance. Despite risk neutrality, equity capital is ...
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Title:Illiquidity and Under-Valuation of Firms Author(s):GALE, Douglas; GOTTARDI, PieroDate:2009Type:Working PaperSeries/Number:EUI ECO; 2009/38Abstract:We study a competitive model in which market incompleteness implies that debt-financed firms may default in some states of nature and default may lead to the sale of the firms’ assets at fire sale prices when markets are ...
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Title:Bankruptcy: Is It Enough to Forgive or Must We Also Forget? Author(s):ELUL, Ronel; GOTTARDI, PieroDate:2008Type:Working PaperSeries/Number:EUI ECO; 2008/41Abstract:In many countries, lenders are restricted in their access to information about borrowers’ past defaults. We study this provision in a model of repeated borrowing and lending with moral hazard and adverse selection. We ...
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Title:The Structure of Multiple Credit Relationships: Evidence from US Firm Author(s):GUISO, Luigi; MINNETTI, RaulDate:2007Type:Working PaperSeries/Number:EUI ECO; 2007/46Abstract:When firms borrow from multiple concentrated creditors such as banks they appear to differentiate their allocation of borrowing. In this paper, we put forward hypotheses for this borrowing pattern based on incomplete ...