The purpose of this paper is to analyze an optimal pricing rule for the case in which the costs of price adjustment are … time dependent, and where those costs depend positively on the magnitude of the percentage price change. By means of … equilibrium level that would have obtained in the absence of costs of contemporaneous price adjustment. Under certain conditions …

The termination of a representative financial firm due to excessive leverage may lead to substantial bankruptcy costs … liquidation and the associated deadweight costs. It is shown that the optimal taxation policy to finance such transfers exhibits …

internalize the systematic risk costs they impose on their lenders. Because risk assessment techniques from the Basel II framework … increases in the leverage of firms, as well as a small increase in borrowing costs …

theory. Using data gathered from the Centers for Medicare and Medicaid Services, we measure a planamp;apos;s generosity as …