A problem of optimal debt management is modeled as a noncooperative interaction between a borrower and a pool of lenders, in infinite time horizon with exponential discount. The yearly income of the borrower is governed by a stochastic process. When the debt-to-income ratio x(t) reaches a given size x∗, bankruptcy instantly occurs. The interest rate charged by the risk-neutral lenders is precis...

This paper values the option of a firm to downscale production in recessionary times. The regulator allows downscaling as long as the recession lasts. The end of the recession is modelled via a Poisson process. We show that the disinvestment timing is affected by two contrary effects. First, when the probability increases that the recession will be over soon, the firm will disinvest sooner, bec...

We model a network economy with three sectors: downstream firms, upstream firms, and banks. Agents are linked by productive and credit relationships so that the behavior of one agent influences the behavior of the others through network connections. Credit interlinkages among agents are a source of bankruptcy diffusion: in fact, failure of fulfilling debt commitments would lead to bankruptcy ch...

Introduction ........................................................................................230 I. Bankruptcy Filings of the Ill and Injured ................................233 A. Medical-Related Bankruptcy Generally ............................233 B. Medical-Related Chapter 13 Filings; The New Data ........237 II. A Traditional Analysis of the Medical-Related Chapter 13 Findings ........

Bankruptcy in the same amount of time and history is very rampant and therefore the vision of the future can be prevented. Using data envelopment analysis (DEA) and malmquist index can precise evaluating of the performances of many different kinds of decision making units (DMU) such as hospitals, universities, business firms, etc. In this paper, we will modify directional distance formulation o...