Johan Hombert, Bruno Biais , Pierre-Olivier Weill Mar 29,2021
Incentive problems make securities’ payoffs imperfectly pledgeable, limiting agents’ ability to issue liabilities. We analyze the equilibrium consequences of such... Read More
Christian Opp , Vincent Glode Sep 28,2020
We develop a tractable model of strategic debt renegotiation in which businesses are sequentially interconnected through their liabilities. This financing... Read More
Christian Heyerdahl-Larsen, Philipp Illeditsch Dec 13,2019
We develop an overlapping generations model with disagreement about the cross-sectional distribution of investors’ preferences and beliefs. This disagreement implies... Read More