Capital immobility and rollover risk in debt markets
– This paper aims to develop a credit-risk model in which firms face rollover risk, and the markets for defaulted assets are segmented due to entry costs. The paper shows that reducing the entry costs in this economy may decrease the total surplus of the economy. This outcome can arise because when...
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| Format: | Article |
| Language: | English |
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Emerald Publishing
2023-03-01
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| Series: | Seonmul yeongu |
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| Online Access: | https://www.emerald.com/insight/content/doi/10.1108/JDQS-09-2022-0021/full/pdf |