The behavioral relevance of non-binding defaults is well established. While most research has focused on decision makers’ responses to a given default, we argue that this individual decision making perspective is incomplete. Instead, a comprehensive understanding of default effects requires to take account of the strategic interaction between default setters and decision makers. We analyze theo...

Should people be considered organ donors after their death unless they request not to be, or should they not be considered donors unless they request to be? Because people tend to stay with the default in a variety of domains, policymakers' choice of default has large and often important effects. In the United States, where the organ-donation policy default is "not a donor," about 5,000 people ...

We present a general model for default time, making precise the role of the intensity process, and showing that this process allows for a knowledge of the conditional distribution of the default only “before the default”. This lack of information is crucial while working in a multi-default setting. In a single default case, the knowledge of the intensity process does not allow to compute the pr...

Water saturation determination is one of the most important tasks in reservoir studies to predict oil and gas in place needed to be calculated with more accuracy. The estimation of this important reservoir parameter is commonly determined by various well logs data and by applying some correlations that may not be so accurate in some real practical cases, especially for carbonate reservoirs. Sin...

Since the earliest formalisation of default logic by Reiter many contributions to this appealing approach to nonmonotonic reasoning have been given. The diierent formalisations are here presented in a general framework that gathers the basic notions, concepts and constructions underlying default logic. Our view is to interpret defaults as special rules that impose a restriction on the juxtaposi...

I develop various frameworks for the separation of loss given default and default intensity present in securities with credit risk. They include spot and forward credit default swaps, digital default swaps and bonds. Cross-sectional no-arbitrage restriction between different securities extracts the pure measure of default intensity and loss given default not contaminated by the other. Using spo...

We present a general approach for representing and reasoning with sets of defaults in default logic, focussing on reasoning about preferences among sets of defaults. First, we consider how to control the application of a set of defaults so that either all apply (if possible) or none do (if not). From this, an approach to dealing with preferences among sets of default rules is developed. We begi...

Sovereign default in emerging countries is accompanied by interest rates spikes, deep recessions, and sharp real exchange rate devaluations. This paper develops a two sector small open economy model to study default risk and its interaction with output, consumption and real exchange rates. Default probabilities and interest rates depend on incentives for repayment. Default occurs in equilibrium...

Links: [1] http://www.fnb.upc.edu/content/mem%C3%B2ries-fnb [2] http://www.fnb.upc.edu/sites/default/files/memoria_fnb_07-08.pdf [3] http://www.fnb.upc.edu/sites/default/files/memoria_FNB_08-09.pdf [4] http://www.fnb.upc.edu/sites/default/files/ACORD%20JF%20001-11%20memoria%2009-10% 20.pdf [5] http://www.fnb.upc.edu/sites/default/files/MEMORIA%20CURS%20ACADEMIC%202010-11%20 FACULTAT%20DE%20N%C3...

Credit risk is quantified by the loss distribution due to unexpected changes in the credit quality of the counterparty in a financial contract. Default correlation risk refers to the risk that a bundle of risky obligors may default together. To understand the clustering phenomena in correlated defaults, we consider credit contagion models which describe the propagation of financial distress fro...