Nittai K. Bergman

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We examine how collateral affects the cost of debt capital. Using a novel data set of secured debt issued by U.S. airlines, we construct industry-specific measures of collateral redeployability. We show that debt tranches that are secured by more redeployable collateral exhibit lower credit spreads, higher credit ratings, and higher loan-to-value ratios—an(More)
The use of broad equity-based compensation for employees in the lower ranks of an organization is a puzzle for standard economic theory: any positive incentive effects should be diminished by free rider problems, and undiversified employees should discount company equity heavily. We point out that employees do not appear to value company stock as prescribed(More)
We examine how liquidation values and firm cash flows affect the credibility of financial contract renegotiation and its outcome. We develop an incomplete-contracting model of financial contract renegotiation and estimate it using data on the airline industry in the United States. We find that airlines successfully renegotiate their lease obligations down(More)
Do bankrupt firms impose negative externalities on their non-bankrupt competitors? We propose and analyze a collateral channel in which a firm’s bankruptcy reduces collateral values of other industry participants, thereby increasing the cost of external debt finance industry wide. To identify this collateral channel, we use a novel dataset of secured debt(More)
UNLABELLED The hallmark of Kangaroo Mother Care (KMC) is the kangaroo position: the infant is cared for skin-to-skin vertically between the mother's breasts and below her clothes, 24 h/day, with father/substitute(s) participating as KMC providers. Intermittent KMC (for short periods once or a few times per day, for a variable number of days) is commonly(More)
We analyze how firms renegotiate labor contracts to extract concessions from labor. 10 While anecdotal evidence suggests that firms tend to renegotiate wages downward in times of financial distress, there is no empirical evidence that documents such renegotiation, its determinants, and its magnitude. This article attempts to fill this gap. Using a unique(More)
UNLABELLED Since Kangaroo Mother Care (KMC) was developed in Colombia in the 1970s, two trends in clinical application emerged. In low-income settings, the original KMC modelis implemented. This consists of continuous (24 h/day; 7 days/week) and prolonged mother/parent-infant skin-to-skin contact; early discharge with the infant in the kangaroo position;(More)
In addition to providing useful skills, education may also yield valuable information about one's tastes and talents. This paper exploits an exogenous difference in the timing of academic specialization within the British system of higher education to test whether education provides such information. I develop a model in which individuals, by taking courses(More)
Models have been put forward recently that seem to be successful in explaining apparently anomalous experimental results in the Ultimatum Game, where responders reject positive offers. While imparting fixed preference orders to fully rational agents, these models depart from traditional models by assuming preferences that take account not only of the(More)