In a financial market where agents trade for prices in the short-term and where news can increase the uncertainty of the public belief, there are strategic complementarities in the acquisition of private information and a continuum of equilibrium strategies if the cost of information is...

England financed its war of the Austrian succession (1743-48) mainly by issuing 3% bonds and 4% callable bonds which were indeed redeemed by Pelham in 1749 through an interest reduction. Implicit policy rules and constraints made the 4% bond a derivative asset of a 3% perpetual. The price data...

In a financial market where agents trade for prices in the short-term and where news can increase the uncertainty of the public belief, there are strategic complementarities in the acquisition of private information and a continuum of equilibrium strategies if the cost of information is...

Institutional lending in crisis is evaluated from a theoretical point of view. First, the share of senior loans in new loans is irrelevant under a given probability distribution of the country's resources. Second, seniority may partially alleviate the inefficiency of debt contracts when the...