Debt concentration and bargaining power

large banks, small banks, and secondary prices
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Centre for Economic Policy Research , London
StatementRaquelFernandez and Sule Özler.
SeriesDiscussion paper series / Centre for Economic Policy Research -- No.1655
ContributionsÖzler, Sule., Centre for Economic Policy Research.
ID Numbers
Open LibraryOL22226871M

This paper investigates how debt concentration—the proportion of a country's debt hel Debt Concentration and Bargaining Power: Large Banks, Small Banks, and Secondary Market Prices - Fernández - - International Economic Review - Wiley Online LibraryCited by: 6. Debt Concentration and Bargaining Power: Large Banks, Small Banks, and Secondary Market Prices.

DEBT CONCENTRATION AND BARGAINING POWER To explain our empirical findings, we construct a theoretical model of the sovereign-debt-renegotiation process that possesses three fundamental characteris-tics: (1) a country's motivation to repay its debt is. Debt Concentration and Bargaining Power: Large Banks, Small Banks, and Secondary Prices.

By Raquel Fernández and Sule Ozler. Abstract. Commercial bank debts of developing countries are held by a heterogenous group of banks. Here we focus on the distinction between large international money-centre banks and smaller domestic banks.

In Author: Raquel Fernández and Sule Ozler. between debt financing and negotiating with a labor union. sure for calculating the concentration of labor union power and determining the Leverage affects the relative bargaining power.

If the firm has all bargaining power ex ante (Λ = 1), zero debt is optimal. If the firm has no bargaining power ex ante (Λ = 0), optimal debt face value is c * = Π. At an interior optimum, optimal debt face value is decreasing in ex ante bargaining power. The optimal self-enforcing contract.

Using the healthcare industry as a novel laboratory, I study whether a firm’s use of debt enhances its bargaining power during negotiations with nonfinancial stakeholders.

I find that reimbursement rates negotiated between a hospital and insurers for two homogeneous procedures are higher when the hospital has more debt. The Bargaining Power of Buyers, one of the forces in Porter’s Five Forces Industry Analysis framework, refers to the pressure that customers/consumers can put on businesses Debt concentration and bargaining power book get them to provide higher quality products, better customer service, and/or lower prices Fiscal Policy Fiscal Policy refers to the budgetary policy of the government.

A large and influential literature in financial economics (Myers [] and onwards) has theoretically and empirically analyzed the underinvestment problem caused by debt overhang. 1 The economic importance of the investment effect of debt overhang is quite example, the potential dampening impact of debt Debt concentration and bargaining power book on capital investment has received much attention during the.

We also perform similar exercises for the supply-chain power and customer concentration and the results in columns (2) and (4) suggest that the debt benefit of customer concentration is more pronounced for low-SCP firms.

However, when a firm has high customer-base concentration, the debt benefit of supply chain power also increases. All firms are risk neutral with a risk-free interest rate of r, and I assume that r > α / (1 − γ) + γ σ 2 / 2 (1 − γ) 2 to ensure convergence.

Details Debt concentration and bargaining power FB2

The corporate tax rate of both firms is τ, and the liquidation value of the DF upon default is time line of the model is as in. Buyers have bargaining power when they are strong enough to be able to put collective pressure on the companies producing a product or a service.

This power is highest when buyers are able to gather together and amount for a large percentage of the producer’s sales revenue or when there is a number of suppliers providing the same type of this article, we will look at 1) types of. Mitch Towner, Debt and Bargaining Outcomes: Evidence from U.S.

Hospitals, Management Science, /mnsc, (). Crossref Martin Gaynor, 'Examining the Impact of Health Care Consolidation' Statement before the Committee on Energy and Commerce, Oversight and Investigations Subcommittee, U.S.

House of Representatives, SSRN Electronic. Thus, a proper test of the theory on the strategic use of debt in managerial bargaining should take into consideration the structure of the firm's debt, not just the level of debt.

The main findings are as follows. First, I show that debt structure is adjusted strategically as a response to an increase in employees' bargaining power.

Consequently, we partly control for this demand with Leverage, a firm's long-term debt scaled by book assets. The last column reports the results when the bargaining power proxy is Concentration Ratio. As predicted, we find significant and positive coefficients on Concentration Ratio for suppliers (, t=).

We show that under some conditions this political bargain mitigates the debt accumulation problem. We analyze various rules and find that when political polarization is high, harsh fiscal rules (e.g., government shutdown) maximize the opposition's bargaining power and leads to lower debt accumulation.

Bargaining power in horizontal mergers is likely to be determined in part by a different form of industry dependence, namely, vulnerability to a price war (Saloner, ). In this case, both government antitrust regulation and the presence of multi-market competition (Kim and Singal, ) create problems with empirical identification of.

5. Bargaining Power of Customers. When Walmart and Target are viewed as the customers of a transaction, they exert a substantial amount of buying power. Many businesses are dependent on large. This gaping wealth divide has sparked proposals for sharply higher taxes on wealth.

Taxing wealth is a promising way to raise revenues and deal with the deep historical skeins of economic inequality and structural racism exposed by the coronavirus and COVID, the disease it causes.

There are many ways taxes on wealth could be reformed and expanded, including adoption of a wealth tax. Debt Concentration and Bargaining Power: Large Banks, Small Banks, and Secondary Market Prices. By Raquel Fernandez and Sule Ozler. Download PDF (2 MB) Abstract. Sovereign debt, secondary market prices, discounts, bargaining power OAI identifier: Provided by: Research Papers in Economics.

Downloaded from. Authors: Mark Stelzner, Connecticut College Mark Paul, New College of Florida Abstract: To better understand the theoretical implications of new empirical findings which show that firms have monopsony power, we construct a monopsony-wage-model that integrates strategic interaction between workers and employers in the wage setting process into an institutional context.

Overview The U.S. economy has a “market power” problem, notwithstanding our strong and extensive antitrust institutions. The surprising conjunction of the exercise of market power with well-established antitrust norms, precedents, and enforcement institutions is the central paradox of U.S.

competition policy today. View the fact sheet in your browser As this policy brief explains, the [ ]. Topic Bargaining Power.

Increasing evidence demonstrates the ways in which bargaining power shapes economic outcomes. One’s economic success is not merely defined by individual characteristics such as education.

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Description Debt concentration and bargaining power FB2

and 5 p.m. ET any business day or email [email protected] Understanding how to arrange the meeting space is a key aspect of preparing for negotiation. In this video, Professor Guhan Subramanian discusses a real world. Bargaining Power of Suppliers EA's suppliers provide physical products and materials, such as computer hardware and software, graphics cards.

The Bargaining Power of Suppliers, one of the forces in Porter’s Five Forces Industry Analysis Framework, is the mirror image of the bargaining power of buyers and refers to the pressure that suppliers can put on companies by raising their prices, lowering their quality, or. book addresses the consequences of modern regimes of debt and puts forward proposals of what needs to be done, politically, to reverse the problems generated by debt-based economies.

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The final chapter presents a convincing case for the 99% to use the power of debt to challenge present inequalities and outlines a platform for action.

Bargaining Power of Buyers Buyer concentration versus firm concentration refers to the extent of concentration in the buyer’s industry compared to the extent of concentration in your industry. The more concentrated the buyer’s industry relative to your industry the greater the bargaining power of.

The concentrated power dynamic just becomes overwhelming, and nothing like a free or open labor market can sustain itself. Recent depressing research shows that monopolization now costs American workers as much as dollars a month on average — and in more concentrated regions and economies, people have even less bargaining power.

Emphasis on examples of bad behavior or efforts to game the system can deflect attention from more profound forms of distributional conflict. Differences in bargaining power based on citizenship, class, race/ethnicity and gender exert a significant—and unfair—influence on labor market outcomes.

Stansbury and Summers on the declining bargaining power of labor. by Tyler Cowen I can't think of a bigger problem than monopoly power or huge market share and concentration as THE explanation for declining labor power. Dayen is "merely" a journalist but his book needs to be addressed, imo.

So does Matt Stoller's work. Ted Craig. The aim of this study is to develop an agent-based debt terms’ bargaining model that simulates the negotiation process and improves the negotiation inefficiency.

This model was developed using bargaining game theory, time-dependent negotiation tactics, and a learning-based approach, and then validated on a real PPP project.Trade can dramatically improve women’s lives, creating new jobs, enhancing consumer choices, and increasing women’s bargaining power in society.

It can also lead to job losses and a concentration of work in low-skilled employment. Given the complexity and specificity of the relationship between trade and gender, it is.