Contingent capital: the trigger problem
Edward Prescott ()
Economic Quarterly, 2012, issue 1Q, 33-50
In this article, we analyze price triggers in contingent capital bonds. We illustrate the pervasiveness of multiple equilibria and the nonexistence of equilibrium in theoretical models. We summarize evidence of these problems from market experiments and we evaluate possible solutions.
Keywords: Banking; market (search for similar items in EconPapers)
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Working Paper: Contingent capital: the trigger problem (2011)
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