Crisis, Debt, and Default
The Effects of Time Preference, Information, and Coordination

Authors: Philip Ernstberger



Publication in the field of economic sciences

Philip Ernstberger analyses in his three essays different topics of financial pathologies. Thereby, changes in fundamentals as well as information are considered as the driving force for the behavior of speculators and investors. The first essay deals with currency crises, in which the central bank, through setting the interest rate, steers the economy and defends against speculators. The second essay examines the effects of a rating and possible biases on the coordination of investors and the pricing of debt. In the third essay the author uses forecasts of default probabilities and implied market default probabilities to infer the weighing of information by investors.

Table of contents (15 chapters)

Front Matter

The Dynamics of Currency Crises - Results from Intertemporal Optimization and Viscosity Solutions
• Front Matter
• Introduction
• Literature
• Model
• Conclusion
• Appendix

The Mispricing of Debt - Influences of Ratings on Coordination
• Front Matter
• Introduction
• Model
• Pricing Bonds
• Conclusion
• Appendix

Probability of Default and Precision of Information
• Front Matter
• Introduction
• Model
• Data and Computation
• Results and Discussion
• Appendix

Back Matter