eprintid: 1878
rev_number: 16
eprint_status: archive
userid: 1482
importid: 105
dir: disk0/00/00/18/78
datestamp: 2012-01-18 05:50:54
lastmod: 2021-04-02 15:34:28
status_changed: 2016-12-08 13:48:41
type: article
metadata_visibility: show
creators_name: Faure-Grimaud, Antoine
creators_name: Mariotti, Thomas
creators_idrefppn: 135416116
creators_idrefppn: 175120617
title: Optimal Debt Contracts and the Single-Crossing Condition
ispublished: pub
subjects: subjects_ECO
abstract: 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.
date: 1999-10
date_type: published
publisher: Elsevier
official_url: http://tse-fr.eu/pub/3416
faculty: tse
divisions: tse
language: en
has_fulltext: FALSE
view_date_year: 1999
full_text_status: none
publication: Economics Letters
volume: 65
number: 1
pagerange: 85-89
refereed: TRUE
issn: 0165-1765
oai_identifier: oai:tse-fr.eu:3416
harvester_local_overwrite: oai_set
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harvester_local_overwrite: number
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harvester_local_overwrite: abstract
harvester_local_overwrite: creators_idrefppn
oai_lastmod: 2016-11-18T08:33:44Z
oai_set: tse
oai_set: ut1c
site: ut1
citation:   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.