relation: https://publications.ut-capitole.fr/id/eprint/1878/
title: Optimal Debt Contracts and the Single-Crossing Condition
creator: Faure-Grimaud, Antoine
creator: Mariotti, Thomas
subject: B- ECONOMIE ET FINANCE
description: We argue that standard results proving that debt contracts can be obtained as the solution of an ex post adverse selection problem are derived without borrowers’ preferences satisfying a proper single crossing condition. For a simple example where this condition is restored, we show that the optimal financial contract is not a standard debt contract, but rather an option contract. This casts some doubts on the robustness of existing results.
publisher: Elsevier
date: 1999-10
type: Article
type: PeerReviewed
identifier:   Faure-Grimaud, Antoine <https://www.idref.fr/135416116> and Mariotti, Thomas <https://www.idref.fr/175120617>  (1999) Optimal Debt Contracts and the Single-Crossing Condition.    Economics Letters, 65 (1).  pp. 85-89.       
relation: http://tse-fr.eu/pub/3416
language: en