Matanda, Ephraim; Chikodza, Eriyoti; Kwenda, Farai - In: Cogent economics & finance 10 (2022) 1, pp. 1-32
This paper proposes and examines a new structural risk of default model for banks in frictional and fuzzy financial … here specifically proposes a new Kealhofer-Merton-Vasicek (KMV)-type model for estimation of the risk of default for banks … extended for both market friction represented by transaction costs and uncertainty modelled by fuzziness. The novel risk of …