Douglas Gale

Silver Professor; Professor of Economics
Department of Economics
New York University

Publications

Discussion Papers
Nov 2014
DP 23
Douglas Gale and Piero Gottardi
We study a dynamic general equilibrium model in which firms choose their investment level and their capital structure, trading off the tax advantages of debt against the risk of costly default. The costs of bankruptcy are endogenously determined, as...
Discussion Papers
Nov 2013
DP 7
Douglas Gale and Piero Gottardi
We study a general equilibrium model in which firms choose their capital structure optimally, trading off the tax advantages of debt against the risk of costly default. The costs of default are endogenous: bankrupt firms are forced to liquidate...