NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

Self-Enforcing Stochastic Monitoring and the Separation of Debt and Equity Claims

Harold L. Cole

NBER Working Paper No. 14480
Issued in November 2008

---- Acknowledgements -----

I would like to thank Narayana Kocherlakota, Jon Pogach, Andy Postelwaite, Martin Schneider, Vasiliki Skreta and Xi Weng for their comments. I gratefully acknowledges support from the National Science Foundation. The views expressed herein are those of the author(s) and do not necessarily reflect the views of the National Bureau of Economic Research.

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