The comparative advantage of a location shapes its industrial structure. Current theoretical models based on this principle do not take stance how advantages in different industries or locations are related with each other, what such patterns relatedness might imply about the evolution advantage. We build simple Ricardian-inspired model and show that hidden information inter-industry inter-loca...

In the absence of forward-looking models for recovery rates, market participants tend to use exogenously assumed constant recovery rates in pricing models. We develop a flexible jumpto-default model that uses observables: the stock price and stock volatility in conjunction with credit spreads to identify implied, endogenous, dynamic functions of the recovery rate and default probability. The mo...