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  • Zhiguo He, Arvind Krishnamurthy, Patrick Bolton, Doug Diamond, Vadim Linetsky, Mark Loewenstein +4 others
  • 2008
We study the dynamics of risk premia during crises where …nancial intermediaries faces constraints on raising equity capital. Risk premia rise when intermediaries' equity capital is scarce. We calibrate the model to match two aspects of crises: the nonlinearity of risk premia during crisis episodes, and the speed of adjustment in risk premia from a crisis(More)
  • Peter M Demarzo, Yuliy Sannikov, Edgardo Barandiaran, Zhiguo He, Han Lee, Gustavo Manso +7 others
  • 2006
We derive the optimal dynamic contract in a continuous-time principal-agent setting, and implement it with a capital structure (credit line, long-term debt, and equity) over which the agent controls the payout policy. While the project's volatility and liquidation cost have little impact on the firm's total debt capacity, they increase the use of credit(More)
  • Zhiguo He, Wei Xiong, Markus Brunnermeier, Doug Diamond, Itay Goldstein, Milton Harris +16 others
  • 2009
Firms commonly spread out their debt expirations across time to reduce the liquidity risk generated by large quantities of debt expiring at the same time. By doing so, they introduce a dynamic coordination problem. In deciding whether to rollover his debt, each maturing creditor is concerned about the rollover decisions of other creditors whose debt matures(More)
This paper models a …rm's rollover risk generated by con ‡ict of interest between debt and equity holders. When the …rm faces losses in rolling over its maturing debt, its equity holders are willing to absorb the losses only if the option value of keeping the …rm alive justi…es the cost of paying o¤ the maturing debt. Our model shows that both deteriorating(More)
Oil in subsurface reservoirs is biodegraded by resident microbial communities. Water-mediated, anaerobic conversion of hydrocarbons to methane and CO2, catalyzed by syntrophic bacteria and methanogenic archaea, is thought to be one of the dominant processes. We compared 160 microbial community compositions in ten hydrocarbon resource environments (HREs) and(More)
  • Bruno Biais, Thomas Mariotti, Jean-Charles Rochet, Stéphane Villeneuve, Ron Anderson, Dirk Bergemann +22 others
  • 2009
We study a continuous-time principal-agent model in which a risk-neutral agent with limited liability must exert unobservable effort to reduce the likelihood of large but relatively infrequent losses. Firm size can be decreased at no cost, and increased subject to adjustment costs. In the optimal contract, investment takes place only if a long enough period(More)
  • Ke Tang, Wei Xiong, Nick Barberis, Alan Blinder, Markus Brunnermeier, Ing-Haw Cheng +19 others
  • 2011
This paper finds that concurrent with the rapid growing index investment in commodities markets since early 2000s, futures prices of non-energy commodities in the US became increasingly correlated with oil and this trend was significantly more pronounced for commodities in the two popular SP-GSCI and DJ-UBS commodity indices. This finding reflects a(More)
We develop an analytically tractable model integrating dynamic investment theory with dynamic optimal incentive contracting, thereby endogenizing financing constraints. Incentive contracting generates a history-dependent wedge between marginal and average q, and both vary over time as good (bad) performance relaxes (tightens) financing constraints.(More)
Financing can be cheaper in certain periods than others. For example, in crisis periods, firms face tougher financing terms than in normal times. We develop an analytically tractable dynamic framework for firms facing stochastic financing opportunities. Financially constrained firms choose intertemporal equity issuance, internal cash accumulation, corporate(More)
PURPOSE En face observation of corneal endothelial cells (ECs) using flat-mounted whole corneas is theoretically much more informative than observation of cross-sections that show only a few cells. Nevertheless, it is not widespread for immunolocalization (IL) of proteins, probably because the endothelium, a superficial monolayer, behaves neither like a(More)