Thought Leadership

An Exploration of the Consequences of Deviations From the Absolute Priority Rule
Lebanon: The Politics of Sovereign Debt Default

Untitled Abstract Bulow and Rogoff (1989) show that a country that has access to a sufficiently rich asset market cannot commit to repay its debts and therefore should be unable…
The Secondary Market as an Expediter of the Sovereign Debt Restructuring Process

Untitled Abstract By explicitly relying on the secondary market for the first time in any major sovereign restructuring, Argentina was at the verge of completing one of the fastest major…
What Is the Optimal Fiscal Policy Response to the COVID-19 Recession?

Untitled Abstract In this article I develop a simplified recession-recovery model as a single process. I conclude that the optimal policy response for countries with fiscal space is large fiscal…
Markets in the Times of Corona: A Cognitive Neuroscience Approach

Markets in the Times of Corona: A Cognitive Neuroscience Approach Carlos A. Abadi March 24, 2020 Abstract We’re living in exceptional times in many domains. In my realm of financial…
Collective Action Clauses: An Analytical Model

Collective Action Clauses: An Analytical Model Carlos A. Abadi March 19, 2020 Abstract A major sovereign restructuring exercise is underway in Argentina and another is ready to get started in…
A Skeptic’s Guide to the Unusual Behavior of Litigation Agents

Abstract The law and economics literature often ignores human idiosyncrasies in developing models of litigants’ behavior. Even those models that do incorporate non-monetary incentives are entirely based in the expected…
The Odyssey of Financial Restructuring Under the US Bankruptcy Code

I present a model of a financially distressed firm with outstanding bank and bond debt. I rely on the objective criterion of investment efficiency to lead the reader through the…
Debt Sustainability in Lebanon: an Econometric Approach

Lebanon is one of the most indebted countries in the world. In addition to have an elevated debt/GDP ratio, much of its debt is denominated in dollars and the value…
Credit Spreads on Defaultable Sovereign Debt

Credit Spreads on Defaultable Sovereign Debt Abstract In the 1970s Walter Wriston, then Citibank’s CEO, famously said: “Countries do not go bankrupt”. He was both right and wrong. He was…
Optimal Sovereign Debt Restructuring

I’m an engineer by background and most everyone who works with me knows me as a rationalist: someone who embraces the theory that when we are presented with a variety…
Anti-Activism Defense: Accurately Modeling the Activists’ Decision Breakeven

There is good reason why corporations reach out to lawyers when they feel besieged by an activist campaign: proxy fights are, in fact, a particular form of litigation (in the…
Ponzi Financial Dynamics

We use a first order differential linear equation to describe the dynamics of an investment scheme that promises more than it can deliver (a Ponzi scheme). The model is based…
Beyond Fair Value

We begin with a brief overview of different company valuation approaches. This article presents the main functions (decision, arbitration, and argument or negotiation function) of company valuation according to the…
The Economics of Litigation

All substantive areas of law have a common concern with the processes by which legaldisputes get resolved. The existing corpus of economic literature on courts is modest, but understanding the…
Argentine Government Take Steps to Curb Indlation, FX Risk; Freezes Utilities Tariffs Ahead of Presidential Elections

The administration of President Mauricio Macri is taking policy measures to curb inflation rates and reduce expectations on further peso devaluation ahead of presidential elections this year. The Argentine government…
Fairness in Talmudic “Bankruptcy Law”

The bankruptcy problem is as old as money itself. The main challenge to analyzing ancient solutions to the bankruptcy problem is that these solutions are often presented not as a…
Assessing Damages in Antitrust Litigation

Victims of antitrust violations can recover damages in court. Yet, the quantication of antitrust damages and to whom they accrue is often complex. An illegal price increase somewhere in the…

Thought Leadership

An Exploration of the Consequences of Deviations From the Absolute Priority Rule

Lebanon: The Politics of Sovereign Debt Default

The Secondary Market as an Expediter of the Sovereign Debt Restructuring Process

What Is the Optimal Fiscal Policy Response to the COVID-19 Recession?

Markets in the Times of Corona: A Cognitive Neuroscience Approach

Collective Action Clauses: An Analytical Model

A Skeptic’s Guide to the Unusual Behavior of Litigation Agents

The Odyssey of Financial Restructuring Under the US Bankruptcy Code

Debt Sustainability in Lebanon: an Econometric Approach

Credit Spreads on Defaultable Sovereign Debt

Optimal Sovereign Debt Restructuring

Anti-Activism Defense: Accurately Modeling the Activists’ Decision Breakeven

Ponzi Financial Dynamics

Beyond Fair Value

The Economics of Litigation

Argentine Government Take Steps to Curb Indlation, FX Risk; Freezes Utilities Tariffs Ahead of Presidential Elections

Fairness in Talmudic “Bankruptcy Law”

Assessing Damages in Antitrust Litigation

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