Thought Leadership Archives - DecisionBoundaries

Debt Sustainability in Lebanon: an Econometric Approach

  Download:Debt Sustainability in Lebanon: an Econometric Approach Debt Sustainability in Lebanon: an Econometric Approach Carlos A. Abadi October 16, 2019 Abstract 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 of the Lebanese […]

Read More…

Credit Spreads on Defaultable Sovereign Debt

  Download:Credit Spreads on Defaultable Sovereign Debt Credit Spreads on Defaultable Sovereign Debt Carlos A. Abadi September 17, 2019 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 right in the formal sense that no bankruptcy regime exists for sovereign […]

Read More…

Optimal Sovereign Debt Restructuring

  Download:The Design of an Optimal Sovereign Debt Restructuring Mechanism The Design of an Optimal Sovereign Debt Restructuring Mechanism Carlos A. Abadi August 14th, 2019 Abstract Debates on sovereign debt restructuring typically emphasize a trade-off between ex-ante and ex-post efficiency. Proponents of bankruptcy procedures highlight the ex-post inefficiency posed by costly default and emphasize the […]

Read More…

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

  Download: Anti-Activism Defense: Accurately Modeling the Activists’ Decision Breakeven Anti-Activism Defense: Quantifying Activists’ Costs Carlos A. Abadi July 9th, 2019 Abstract 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 sense that they […]

Read More…

Ponzi Financial Dynamics

  Download:Ponzi Financial Dynamics The Financial Dynamics of Unsustainable Fraudulent Investment Schemes Carlos A. Abadi June 3rd, 2019 Abstract 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 on (i) a promised, unrealistic, rate […]

Read More…

Beyond Fair Value

Abstract 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 functional (i.e. purpose-oriented) theory. The main body of the article focuses on the decision function and shows how the decision value can be derived […]

Read More…

The Economics of Litigation

  Download:The Economics of Litigation   [Equations are best formatted in the downloadable PDF Above] 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 litigation process has become important, as courts intrude more forcefully […]

Read More…

Argentine Government Take Steps to Curb Inflation, 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 seeks to limit the erosion of consumers’ purchasing power amid accelerating inflation rates, announcing a package of new economic initiatives that includes a freeze on […]

Read More…

Fairness in Talmudic “Bankruptcy Law”

Download:Talmud Bankruptcy Fairness in Talmudic “Bankruptcy Law” Carlos A. Abadi March 14th, 2019 Abstract 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 general algorithm, but rather as a series of examples. Whenever those […]

Read More…

Assessing Damages in Antitrust Litigation

  Download: Assessing Damages in Antitrust Litigation Assessing Damages in Antitrust Litigation Carlos A. Abadi March 21st, 2019 Abstract Victims of antitrust violations can recover damages in court. Yet, the quanti cation of antitrust damages and to whom they accrue is often complex. An illegal price increase somewhere in the chain of production percolates through to […]

Read More…