Financial covenants influence firm behavior by state-contingently allocating decision rights. I develop a quantitative model with long-term debt where shareholders cannot commit to not dilute existing lenders new issuances. Lenders intervene on covenant violations but either any restructuring plan ex ante. Counterfactual experiments suggest that financial significantly reduce default probabilit...

Many database applications tolerate a certain amount of data inconsistency to gain increased concurrent processing and to accommodate real-world constraints. This paper describes how inconsistency can be modeled in a database and managed with consistency restoration methods. The correctness criterion for the maintenance of inconsistency is epsilon serializability (ESR). An informal notation to ...

One of the important issues when designing effective expert systems is the validation and refinement of the acquired knowledge bases. The validation and refinement problem becomes more important and more difficult when the knowledge bases of expert systems consist of uncertain rules, e.g., probabilistic rules. In this paper, we first describe one type of inconsistency of knowledge bases called ...

Many database applications tolerate a certain amount of data inconsistency to gain increased concurrent processing and to accommodate real-world constraints. This paper describes how inconsistency can be modeled in a database and managed with consistency restoration methods. The correctness criterion for the maintenance of inconsistency is epsilon serializability (ESR). An informal notation to ...