Publications

March 1981 (Revised February 1983)
Background Note

Managing the Debt Crises of Developing Countries

25 Apr 2012
Conference Presentation

The European Sovereign Debt Crisis and Italy

By: Dante Roscini

March 1998
Article

Internal Financing of Multinational Subsidiaries: Debt vs. Equity

By: Bhagwan Chowdhry and Joshua D. Coval

Keywords: Financing and Loans; Borrowing and Debt; Global Range

October 2016
Article

Technical Debt and System Architecture: The Impact of Coupling on Defect-related Activity

By: Alan MacCormack and Daniel J. Sturtevant

Technical debt is created when design decisions that are expedient in the short-term increase the costs of maintaining and adapting this system in future. An important component of technical debt relates to decisions about system architecture. As systems grow and... View Details

Keywords: Information Infrastructure; Performance Efficiency; Applications and Software; Infrastructure

January 2008
Teaching Note

Credit Risk: Valuing Risky Debt & CDOs (TN)

By: Joshua D. Coval and Erik Stafford

Teaching Note for [208111] and [208113]. View Details

Keywords: Price; Credit; Risk Management; Investment; Bonds; Borrowing and Debt; Decisions

October 2014
Article

Good Cop, Bad Cop: Complementarities Between Debt and Equity in Disciplining Management

By: Alexander Guembel and Lucy White

In this paper we examine how the quantity of information generated about firm prospects can be improved by splitting a firm's cash flow into a "safe" claim (debt) and a "risky" claim (equity). The former, being relatively insensitive to upside risk, provides a... View Details

Keywords: Information; Borrowing and Debt; Equity; Corporate Finance

April 2007 (Revised June 2007)
Case

Aid, Debt Relief, and Trade: An Agenda for Fighting World Poverty (A)

By: Laura Alfaro, Eric D. Werker and Renee Kim

At the 2005 Group of Eight summit, world leaders agreed to relieve the world's poorest countries' debt burdens and double aid to Africa by 2010. The announcement raised questions whether debt relief would really help the poor. By examining past aid trends and policies... View Details

Keywords: Developing Countries and Economies; Borrowing and Debt; Capital; International Relations; Nonprofit Organizations; Poverty; Welfare; Africa

Educators

6 Apr 2011
Conference Presentation

Finding Technical Debt in Platform and Network Architectures

By: Carliss Y. Baldwin and Alan MacCormack

Keywords: Information Infrastructure; Design

February 1996
Article

Optimal Debt Structure and the Number of Creditors

By: David S. Scharfstein and Patrick Bolton

Article

Inflation and Taxes in a Growing Economy with Debt and Equity

By: M. Feldstein, Jerry R. Green and Eytan Sheshinski

Our tax system was designed for an economy with little or no inflation. The current paper shows that inflation causes capricious changes in the effective rate of tax on capital income and therefore in the real net rate of return that savers receive. This is not only a... View Details

Keywords: Taxation; Inflation and Deflation; Economy

May 2004 (Revised July 2008)
Teaching Note

Brazil 2003: Inflation Targeting and Debt Dynamics (TN)

By: Laura Alfaro, Rafael M. Di Tella and Ingrid Vogel

Teaching Note to (9-704-028). View Details

Keywords: Inflation and Deflation; Borrowing and Debt; Brazil

Research Summary

Good cop, Bad Cop: Complementarities between Debt and Equity in Disciplining Management

Joint work with Alexander Gümbel, Saïd Business School and Lincoln College Oxford

In this paper we examine how the quantity of information generated about firm... View Details

Article

Financial Education and the Debt Behavior of the Young

By: Jaya Y. Wen, Meta Brown, Wilbert van der Klaauw, Basit Zafar and John Grigsby

July 2002
Case

Fresh Start? Peru's Legacy of Debt and Default (B)

By: Julio J. Rotemberg and Lisa Lewis

Supplements the (A) case. View Details

Keywords: Peru

Educators

September 1990
Article

How Risky is the Debt in Highly Leveraged Transactions?

Keywords: Risk and Uncertainty; Borrowing and Debt

1990
Chapter

The Changing Nature of Debt and Equity: A Discussion

By: Robert C. Merton

Keywords: Borrowing and Debt; Equity; Change

May 2006 (Revised January 2007)
Teaching Note

The Barber of Buenos Aires: Argentina's Debt Renegotiation (TN)

By: Noel Maurer and Aldo Musacchio

Keywords: Borrowing and Debt; Argentina

March 2005
Article

Sovereign Debt As a Contingent Claim: A Quantitative Approach

By: Laura Alfaro and Fabio Kanczuk

We construct a dynamic equilibrium model with contingent service and adverse selection to quantitatively study sovereign debt. In the model, benefits of defaulting are tempered by higher future interest rates. For a wide set of parameters, the only equilibrium is one... View Details

Keywords: Sovereign Finance; Borrowing and Debt; Interest Rates; Balance and Stability; Risk and Uncertainty; Risk Management; Mathematical Methods; Management Style; Segmentation; Debt Securities; Banking Industry