In light of recent calls for further validation of structural models, this paper evaluates the popular Dynamic Quality Ladder model of the Ericson and Pakes (1995) empirical framework using the nonrandom holdout approach of Keane and Wolpin (2007). The model is used to predict data following a...

In this paper, we consider an optimal portfolio de-leveraging problem, where the objective is to meet specified debt/equity requirements at the minimal execution cost. Permanent and temporary price impact is taken into account. With no restrictions on the relative magnitudes of permanent and...