Search Results

(refine search)

SORT BY: PREVIOUS / NEXT

All:
Title:
Author:
Abstract:
Keywords:

+ Add Search Parameter

Conference Paper
Social capital and the cost of business loan contracting
Uzzi, Brian; Lancaster, Ryon (2001)
Proceedings , Paper 792

Working Paper
Non-exclusive contracts, collateralized trade, and a theory of an exchange
Leitner, Yaron (2003)
Liquid markets where agents have limited capacity to sign exclusive contracts may permit agents to promise the same asset to multiple counterparties and subsequently default. I show that in such markets an exchange can arise as an intermediary whose only role is to set limits on the number of contracts that agents can report voluntarily. In some cases, these limits must be non-binding in equilibrium, and reported trades must not be made public. A (costly) alternative to an exchange is collateralized trade, and the gains from an exchange increase when agents have more intangible capital (e.g., ...
Working Papers , Paper 03-3

Working Paper
Debt and equity as optimal contracts
Santos, João A. C. (1995)
Using a principal-agent model in which an entrepreneur has an investment project whose returns depend on his effort, which is not observable by the financier, the author shows that the optimal contract used to finance such a project can be replicated by a unique combination of debt and equity, proving the optimality of these financial instruments. ; A look at the evolution of the collection, clearinghouse, and regulatory provisions of the Federal Reserve Act. The Reserve Banks? check collection service was designed in 1913 to serve as "glue," attaching the new central bank to the commercial ...
Working Papers (Old Series) , Paper 9505

Working Paper
High-Yield Debt Covenants and Their Real Effects
Bräuning, Falk; Ivashina, Victoria; Ozdagli, Ali (2023-08-22)
High-yield debt, including leveraged loans, features incurrence financial covenants or "cov-lite" provisions. These covenants differ from traditional loans' maintenance covenants, as they preserve equity control rights but impose specific restrictions on the borrower after crossing the covenant threshold. Contrary to the prevailing belief that incurrence covenants offer limited protection for creditors, our research reveals a significant and sudden decline in investment upon triggering these covenants. This evidence highlights a novel propagation mechanism for economic shocks, wherein ...
Working Papers , Paper 2311

Journal Article
Research spotlight: Ties that bind
Sablik, Timothy (2011-07)
Related links: https://www.richmondfed.org/-/media/richmondfedorg/publications/research/econ_focus/2011/q3/research_spotlight_weblinks.cfm
Econ Focus , Volume 15 , Issue 3Q , Pages 11

Working Paper
Outsourcing business service and the scope of local markets
Ono, Yukako (2001)
This paper examines outsourcing to test whether productivity-enhancing specialization is facilitated in bigger cities. First, the paper provides a theoretical model which shows that greater local demand for a given input promotes the entry of suppliers into a city; the increased number of suppliers then results in lower outsourcing prices and a higher use of outsourcing by final producers, therefore reducing the final producers' production costs. I then test the predictions of the model by examining manufacturing plants' practices of outsourcing business services, by using plant-level data ...
Working Paper Series , Paper WP-01-09

Report
Risky collateral and deposit insurance
Kocherlakota, Narayana R. (2000)
This paper provides a new rationalization for deposit insurance and systemic disintermediations. I consider an environment in which borrowers face no penalty for failing to repay obligations except the loss of their collateral. I assume that this collateral has aggregate risk. For a subset of the exogenous parameters, I demonstrate that an optimal arrangement features deposit insurance. For a strictly smaller set of parameters, it is optimal in some states of the world to have systemic disintermediation and concomitant falls in real output.
Staff Report , Paper 274

Journal Article
Credit derivatives: just-in-time provisioning for loan losses
Moser, James T. (1998-10)
Credit derivative contracts offer a new route for managing counterparty exposures. This article discusses two formats of these contracts. The contracts have potential for providing portfolio managers with a cost effective, just-in-time source of liquidity.
Economic Perspectives , Volume 22 , Issue Q IV

Report
Firm dynamics and financial development
Bai, Yan; Zhang, Jing; Arellano, Cristina (2009)
This paper studies the impact of cross-country variation in financial market development on firms? financing choices and growth rates using comprehensive firm-level datasets. We document that in less financially developed economies, small firms grow faster and have lower debt to asset ratios than large firms. We then develop a quantitative model where financial frictions drive firm growth and debt financing through the availability of credit and default risk. We parameterize the model to the firms? financial structure in the data and show that financial restrictions can account for the ...
Staff Report , Paper 392

Working Paper
A dynamic model with vertical specialization, credit chains, and incomplete enforcement
Jeske, Karsten (2002)
This paper sets up a model to account for differences in total factor productivity due to differences in enforcement of contracts. Vertical specialization generates the need for intra-period credit, because final goods producers cannot pay their intermediate goods suppliers before they produce their final good. The paper shows that if there are enforcement problems, the capital distribution is skewed in the sense that intermediate goods producers operate at lower capital levels and higher marginal products of capital than final goods producers. This wedge is created by the price for ...
FRB Atlanta Working Paper , Paper 2002-21

show more (18)

PREVIOUS / NEXT

Fed in Print

Search Results

FILTER BY year

FILTER BY Bank

FILTER BY Series

FILTER BY Content Type

FILTER BY Author

FILTER BY Jel Classification

FILTER BY Keywords