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Barney Hartman-Glaser

Institution

UCLA

PhD Year

2011

Phone

510-289-3983

bhglaser@gmail.com

FTG Membership

Member

Website

http://www.barneyhglaser.com

Featured Work

Mar 16, 2019

Barney Hartman-Glaser

Corporate Liquidity Management under Moral Hazard

We present a model of liquidity management and financing decisions under moral hazard in which a firm accumulates cash to forestall liquidity default. When the cash balance is high, a tension arises between accumulating more cash to reduce the probability of default and providing incentives for the manager. When the cash balance is low, the firm hedges against liquidity default by transferring cash flow risk...

Jan 8, 2019

Barney Hartman-Glaser | Working Paper No. 00049-00

The Insurance is the Lemon: Failing to Index Contracts

We model the widespread failure of contracts to share risk using available indices. A borrower and lender can share risk by conditioning repayments on an index. The lender has private information about the ability of this index to measure the true state the borrower would like to hedge. The lender is risk averse, and thus requires a premium to insure the borrower. The borrower, however,...