Related papers: Why Long-Term Debt Instruments Cannot Be Deposit S…

In complete markets, there are risky assets and a riskless asset. It is assumed that the riskless asset and the risky asset are traded continuously in time and that the market is frictionless. In this paper, we propose a new method for…

We study a coin-tossing model used by a ratings agency to justify the sale of constant proportion debt obligations (CPDOs), and prove that it was impossible for CPDOs to achieve in a finite lifetime the Cash-In event of doubling its…

Context: Advances in technical debt research demonstrate the benefits of applying the financial debt metaphor to support decision-making in software development activities. Although decision-making during requirements engineering has…

With lots of freemium and premium, open and closed source software tools that are available in the market for dealing with different activities of Technical Debt management across different dimensions, identifying the right set of tools for…

We consider a model of debt management, where a sovereign state trade some bonds to service the debt with a pool of risk-neutral competitive foreign investors. At each time, the government decides which fraction of the gross domestic…

This note presents a proof of the conjecture in \citet*{pearl1995testability} about testing the validity of an instrumental variable in hidden variable models. It implies that instrument validity cannot be tested in the case where the…

We determine the optimal investment strategy of an individual who targets a given rate of consumption and who seeks to minimize the probability of going bankrupt before she dies, also known as {\it lifetime ruin}. We impose two types of…

This paper investigates whether a financial system can be made more stable if financial institutions share risk by exchanging contingent convertible (CoCo) debt obligations. The question is framed in a financial network model of debt and…

Designed to compete with fiat currencies, bitcoin proposes it is a crypto-currency alternative. Bitcoin makes a number of false claims, including: solving the double-spending problem is a good thing; bitcoin can be a reserve currency for…

In a dynamic economy, we characterize the fiscal policy of the government when it levies distortionary taxes and issues defaultable bonds to finance its stochastic expenditure. Default may occur in equilibrium as it prevents the government…

When an insurance note is also a derivative a serious problem arises because a derivative must be fulfilled immediately. This feature of derivatives prevents claims processing procedures that screen out ineligible claims. This, in turn,…

Complexity of products, volatility in global markets, and the increasingly rapid pace of innovations may make it difficult to know how to approach challenging situations in mechatronic design and production. Technical Debt (TD) is a…

Technical Debt (TD) refers to the long-term costs incurred when developers prioritize short-term delivery over quality-improving work. Architectural Technical Debt (ATD) arises when architectural decisions (e.g., technology choices,…

We consider the problem of governing systemic risk in an assets-liabilities dynamical model of banking system. In the model considered each bank is represented by its assets and its liabilities.The capital reserves of a bank are the…

This paper develops a nonlinear theoretical framework to analyze the dynamics of public expenditure reallocation in Uruguay. Motivated by recent debates on fiscal reform and expenditure efficiency, the paper models fiscal adjustment as a…

We consider the problem of modelling the term structure of defaultable bonds, under minimal assumptions on the default time. In particular, we do not assume the existence of a default intensity and we therefore allow for the possibility of…

Technical Debt is a metaphor used to describe the situation in which long-term software artifact quality is traded for short-term goals in software projects. In recent years, the concept of self-admitted technical debt (SATD) was proposed,…

Through a long-period analysis of the inter-temporal relations between the French markets for credit default swaps (CDS), shares and bonds between 2001 and 2008, this article shows how a financial innovation like CDS could heighten…

Technical Debt (TD) refers to the situation where developers make trade-offs to achieve short-term goals at the expense of long-term code quality, which can have a negative impact on the quality of software systems. In the context of code…

The traditional monetary transmission mechanism usually views the equity markets as the monetary reservoir that absorbs over-issued money, but due to China's unique fiscal and financial system, the real estate sector has become an…