Illegal finance and usurers behaviour
Raffaella Barone,
Roy Cerqueti and
Anna Grazia Quaranta ()
European Journal of Law and Economics, 2012, vol. 34, issue 2, 265-277
Abstract:
This paper deals with a stochastic dynamic optimization problem in the context of illegal company financing. Our analysis of the usury phenomenon is conducted by searching for the best interest rate which an illegal financier should apply to a company in order to bring about the firm’s bankruptcy whilst still securing the maximum wealth for the firm’s guarantee. In this case, the company itself can be taken over and used by the financier for illegal activities. Because of the highly complex nature of the problem, the analysis will be performed via simulation studies. Copyright Springer Science+Business Media, LLC 2012
Keywords: Usury; External financing of companies; Bankruptcy; Stochastic dynamics; Optimization problem; C61; G32; K42 (search for similar items in EconPapers)
Date: 2012
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)
Downloads: (external link)
http://hdl.handle.net/10.1007/s10657-010-9183-x (text/html)
Access to full text is restricted to subscribers.
Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
HTML/Text
Persistent link: https://EconPapers.repec.org/RePEc:kap:ejlwec:v:34:y:2012:i:2:p:265-277
Ordering information: This journal article can be ordered from
http://www.springer.com/journal/10657
DOI: 10.1007/s10657-010-9183-x
Access Statistics for this article
European Journal of Law and Economics is currently edited by Jürgen Georg Backhaus, Giovanni B. Ramello and Alain Marciano
More articles in European Journal of Law and Economics from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().