The Hazards of Debt: Rollover Freezes, Incentives, and Bailouts
We investigate the trade-off between incentive provision and inefficient rollover freezes for a firm financed with short-term debt. First, debt maturity that is too short-term is inefficient, even with incentive provision. The optimal maturity is an interior solution that avoids excessive rollover r...
| Main Authors: | , |
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| Other Authors: | |
| Format: | Article |
| Language: | English |
| Published: |
Oxford University Press,
2012-12-11T16:51:55Z.
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| Subjects: | |
| Online Access: | Get fulltext |