Debt, financial fragility, and systemic risk / E.P. Davis.

Format:

Book

Author/Creator:

Davis, E. P.

Language:

English

Subjects (All):

Corporate debt--Great Britain.

Corporate debt.

Finance--Great Britain.

Finance.

Finance--European Economic Community countries.

Finance--United States.

Physical Description:

1 online resource (406 p.)

Place of Publication:

Oxford : Clarendon Press ; New York : Oxford University Press, 1992.

Language Note:

English

Summary:

Davis explores, in both theoretical and empirical terms, the nature of the relationships in advanced industrial economies between levels and changes in borrowing, vulnerability to default in the non-financial sector, and widespread instability in the financial sector.

Contents:

Contents; List of Charts and Figures; List of Tables; Introduction; 1. DEBT; (1) The Nature of the Debt Contract; (2) Aspects of the Economics of Debt; (3) Theories of Credit Rationing; (4) Theories of Intermediation; (5) Aspects of the Structure and Development of Financial Systems; Summary; Appendix: The Development of Financial Systems-a Long View; 2. FINANCIAL FRAGILITY IN THE CORPORATE SECTOR; (1) Recent Trends in Corporate Sector Indebtedness; (2) Theories of Corporate Debt; (3) Costs of Bankruptcy; (4) Explaining Relative Levels of Corporate Indebtedness

(5) Explaining Divergences From Structural Patterns of Gearing(6) Company Sector Debt and Default; Conclusions; 3. FINANCIAL FRAGILITY IN THE PERSONAL SECTOR; (1) Recent Trends in Personal-Sector Indebtedness; (2) Theoretical Considerations: the Household-Sector Demand for Credit; (3) An Interpretation of Patterns of Indebtedness; (4) Personal-Sector Debt and Default; (5) Personal Debt, Saving, and Asset Prices; Conclusions; 4. ECONOMIC EFFECTS OF FINANCIAL FRAGILITY; (1) Effects on Other Companies; (2) Effects on Public Expenditure; (3) Effects on Economic Policy

(4) Cyclical Effects on Saving and Investment(5) Effects Operating via the Financial System; (6) Financial Fragility and Longterm Economic Performance; (7) Volatility of Asset Prices; (8) Bank Insolvency; (9) Financial Fragility: a Case-study; Conclusions; Appendix: Public Debt and Financial Fragility; 5. THE ECONOMIC THEORY OF SYSTEMIC RISK; (1) Bank Runs; (2) Financial Regulation against Systemic Risk; (3) Debt and Financial Fragility; (4) The Monetarist Approach; (5) Rational Expectations; (6) Uncertainty; (7) Credit Rationing; (8) Asymmetric Information and Agency Costs

(9) Dynamics of Dealer MarketsConclusions; 6. FINANCIAL INSTABILITY 1966-1990; (1) Wholesale Market Structure and Dynamics; (2) Six Episodes of Financial Instability; (3) Price and Quantities in the Financial Markets 1966-90; (4) A Comparative Empirical Analysis of the Periods of Instability; (5) The Theory of Crises Viewed in the Light of Empirical Evidence; Conclusions; Appendix 1: Euromarkets during the 1987 Crash; Appendix 2: Prediction of Systemic Risk: a Simple Econometric Test; 7. SYSTEMIC RISK AND FINANCIAL MARKET STRUCTURE; (1) Theories of Financial Crisis

(2) Recent Developments in Industrial Economics and their Application to Financial Markets(3) An Industrial Approach to Financial Instability; (4) Structural Reasons for Overshooting; (5) Financial Instability: a Re-examination; (6) New Entry without Instability; Conclusions; Appendix: The Industrial Economics of the Primary Eurobond Market; 8. TEN FURTHER FINANCIAL CRISES; (1) Overend Gurney (1866)-UK; (2) The Stock-Market Crash and the Great Depression (1929-1933)-USA; (3) The Yamaichi Rescue (1965)-Japan; (4) The Penn Central Bankruptcy (1970)-USA

(5) The Continental Illinois Bank Failure (1984)-USA

Notes:

Description based upon print version of record.

Includes bibliographical references (p. [286]-302) and indexes.

Description based on print version record.

Description based on publisher supplied metadata and other sources.

ISBN:

1-281-98949-5

0-19-828752-6

0-19-152161-2

9786611989491

OCLC:

922954449