The recent reemergence of large U.S. government budget deficits has rekindled the debate as to whether deficits adversely impact real interest rates. The conventional “crowding out” hypothesis predicts that there would be such an adverse effect; the Ricardian “deficit neutrality”...

The recent reemergence of large U.S. government budget deficits has rekindled the debate as to whether deficits adversely impact real interest rates. The conventional “crowding out” hypothesis predicts that there would be such an adverse effect; the Ricardian “deficit neutrality”...

Net-worth covenants, as introduced by Black and Cox (1976), provide the firm’s bondholders with the right to force reorganization or liquidation if the value of the firm falls below a certain threshold. In the event of default, however, many bankruptcy codes stipulate an automatic stay of...

We propose a new framework for bargaining in which the process follows an agenda. The agenda is represented by a family, parameterized by time, of increasing sets of joint utilities for possible agreements. This is in contrast to the single set used in the standard framework. The set at each...