Search Results - subject:"constraint"

Rent-to-Own Housing Contracts Under Financial Constraints

Jaggia, Sanjiv - 2015

Due to tougher lending standards, Rent-to-Own (RTO) contracts are getting popular. In a RTO contract, a tenant signs a lease with the option to buy a house at a predetermined purchase price. That is, the tenant receives a call option. RTO contracts allow potential financially constrained...

Persistent link: https://www.econbiz.de/10013026653

A unifying approach to risk-measure-based optimal reinsurance problems with practical constraints

Lo, Ambrose - In: Scandinavian actuarial journal (2017) 7, pp. 584-605

Persistent link: https://www.econbiz.de/10011848476

Optimality in nesting problems: New constraint programming models and a new global constraint for non-overlap

Cherri, Luiz Henrique; Carravilla, Maria Antónia; … - In: Operations Research Perspectives 6 (2019), pp. 1-19

identified in the literature and are very relevant in the industry. In this paper, constraint programming (CP) is used to model … be enforced for all the problem variants, is guaranteed through the new global constraint NoOverlap in one of the … performance of each approach applied to each problem variant. The models based on the global constraint NoOverlap performed …

Persistent link: https://www.econbiz.de/10012662790

Seniors’ Home Equity Extraction : Credit Constraints and Borrowing Channels

Moulton, Stephanie - 2019

Households borrow against home equity through different types of mortgages: closed end home equity loans or revolving lines of credit, cash-out refinancing, and—for senior homeowners—reverse mortgages. The objective of this study is to identify how borrowing constraints and the lending...

Persistent link: https://www.econbiz.de/10012903634

Structural Demand Estimation with Borrowing Constraints

Ouazad, Amine - 2019

Structural models of location choice use observed demand to estimate household preferences. However, household demand may be partly determined by borrowing constraints, limiting households' choice set. Credit availability differs across locations, households, and years. We put forward a model of...

Persistent link: https://www.econbiz.de/10012903942

Vertical Relations Under Credit Constraints

Nocke, Volker - 2019

We model the impact credit constraints and market risk have on the vertical relationships between firms in the supply chain. Firms which might face credit constraints in future investments become endogenously risk averse when accumulating pledgable assets. In the short run, the optimal supply...

Persistent link: https://www.econbiz.de/10012905591

Bank Shocks, Financial Constraints, and Targeting Behavior : Evidence from Credit Supply Fluctuations

Shikimi, Masayo - 2019

This study investigates whether fluctuations in credit supply in a macroeconomy and a relational bank's financial condition affect the capital structure adjustment of firms. Using data for Japanese listed firms from 1988 to 2014, we find that firms adjust their capital structure slower during...

Persistent link: https://www.econbiz.de/10012890523

Public Procurement in Times of Crisis : The Bundling Decision Reconsidered

Schmitz, Patrick W. - 2019

The government wants two tasks to be performed. In each task, unobservable effort can be exerted by a wealth-constrained private contractor. If the government faces no binding budget constraints, it is optimal to bundle the tasks. The contractor in charge of both tasks then gets a bonus payment...

Persistent link: https://www.econbiz.de/10012891764

Credit Crunches from Occasionally Binding Bank Borrowing Constraints

Holden, Tom D. - 2019

We present a model in which banks and other financial intermediaries face both occasionally binding borrowing constraints, and costs of equity issuance. Near the steady state, these intermediaries can raise equity finance at no cost through retained earnings. However, even moderately large...

Persistent link: https://www.econbiz.de/10012893248

A theory of housing demand shocks

Liu, Zheng; Wang, Pengfei; Zha, Tao - 2019

Aggregate housing demand shocks are an important source of house price fluctuations in the standard macroeconomic models, and through the collateral channel, they drive macroeconomic fluctuations. These reduced-form shocks, however, fail to generate a highly volatile price-to-rent ratio that...

Persistent link: https://www.econbiz.de/10011987419