Brander and Lewis (AER, 1986) show that ...rms with limited liability can use debt to commit to aggressive behavior in Cournot markets. In our duopoly experiments, we ...nd that subjects choose much less debt than predicted by theory. Although subjects try to exploit the strategic advantage of debt, they do not (want to) acknowledge possible strategic advantages of opponents’ debt. Replacing qu...

This research responds to the call for more research on the conceptualization and measurement of socio-economic status that moves beyond merely considering education, occupation and income variables. Credit card usage and credit card debt is a growing phenomenon in developed countries. Using data from a 1997 representative sample of more than 900 adults in Ohio, we explored how credit card debt...

OBJECTIVES We estimated associations between total amount of parental debt and of home mortgage, student loan, automobile, and unsecured debt with children's socioemotional well-being. METHODS We used population-based longitudinal data from the National Longitudinal Study of Youth 1979 Cohort and Children of the National Longitudinal Study of Youth 1979 Cohort. Our analytic sample consisted o...

We study a novel aspect of a firm’s capital structure, namely the profile of its debt maturity dates. In a simple theoretical framework we show that the dispersion of debt maturities constitutes an important dimension of capital structure choice, driven by firm characteristics and debt rollover risk. Guided by these results we establish two main empirical results. First, using an exogenous shoc...

This article analyzes the dynamic coordination problem among creditors of a firm with a time-varying fundamental and a staggered debt structure. In deciding whether to roll over his debt, each maturing creditor is concerned about the rollover decisions of other creditors whose debt matures during his next contract period. We derive a unique threshold equilibrium and characterize the roles of fu...

The debt crisis, and the IMF-sponsored stabilization programs enacted in response to it, have resulted in an excessive degree of ansterity for several of the debtor countries. The current creditor strategy, it is argued, is not sustainable over the long term unless the debtor countries are allowed to grow. The author advocates a more generous treatment of debt servicing requirements, in the for...

The deforestation and degradation of tropical forests are taking place at an extremely rapid pace. According to the Food and Agriculture Organization (FAO), the estimated annual rate of tropical deforestation during the 1981-1985 period was 113 846 square kilometers or 0.6% of the 1981 total forested area. The implications of the loss of these forests are staggering (Myers, N., 1989. Deforestat...

whenever there is a debt on someone, the debtor can pay back his debt and ask the creditor for a clearance. should the creditor refuse to accept the debt, this could be construed as an abuse and harm to the debtor who can turn to the court or any other competent authority. the court or the other competent authority could accept the debt on behalf of the creditor. in case the debtor is not able ...

In contrast to the standard capital structure theory prediction that builds on a trade-o¤ between interest tax shields and expected bankruptcy costs, public …rms use debt quite conservatively. To address this well known debt conservatism puzzle (Graham 2000), I argue that servicing debt drains valuable liquidity for a …nancially constrained …rm and hence endogenously creates ‘debt servicing cos...

The pricing and control of firms’ debt has become a major issue since Merton’s (1974) seminal paper. Yet, Merton as well as other recent theories presume that the asset value of the firm is independent of the debt of the firm. However, when using debt finance firms may have to pay a premium for an idiosyncratic default risk and may face debt constraints. We demonstrate that firm specific debt c...