We study a model in which leverage and compensation are both choice variables for the firm and borrowing spreads are endogenous. First, we analyze the correlation between leverage and variable compensation. We show that allowing for both endogenous compensation and leverage fully rationalizes...

Based on the assumption that a vehicle always tries to keep a certain speed and a proper distance from the one in front of it, a force model, being a kind of microscopic models which is similar to van der Waal's molecule model, is established. We develop three approaches to study the equilibrium...