We discuss structuralmodels based onMerton’s framework. First, we observe that the classical assumptions of theMertonmodel are generally rejected. Secondly, we implement a structural credit riskmodel based on stable non-Gaussian processes as a representative of subordinated models in order to overcome some drawbacks of the Merton one. Finally, following the KMV-Merton estimation methodology, we...

ABSTRACT In the credit risk modeling literature, there are two different viewpoints towards the structural model of Merton. Many empirical tests show that the Merton model overestimates corporate bond prices substantially. However, there are other empirical works defensing that the Merton model is useful in predicting default and performs well in estimating deposit insurance fund. In this paper...

The Merton problem is the well-known stochastic control of choosing consumption over time, as well an investment mix, to maximize expected constant relative risk aversion (CRRA) utility consumption. formulated and provided analytical solution in 1970; since then a number extensions original formulation have been solved. In this note we identify certainty equivalent problem, i.e., deterministic ...

Winner-take-all careers are created through cumulative advantage. Once a player gains a small advantage over other equally skilled players, it snowballs over time. This phenomenon, coined the “Matthew effect” by sociologist Robert Merton, is part of the reason why the rich get richer while the poor get poorer. Merton first described his findings while demonstrating that the more reputed scienti...

Ana akımın en tanınmış ve en önemli iki aydınının iletişim alanında en önemli klasik yapıtlarından biri de Mass Communication, Popular Taste and Organized Action yapıtıdır. Lazarsfeld iletişimde ampirik yöntemin gelişmesinde ve yönetimsel araştırmanın yaygınlaşmasında öncülük etmiştir. Merton, T. Parsons’un yapısal fonksiyonalizmini geliştiren Amerikan ana akım sosyolojisinin önemli liderlerind...