Abstract
This is a post-peer-review, pre-copyedit version of an article published in European Journal of Law and Economics. The final authenticated version is available online at: http://dx.doi.org/10.1007/s10657-010-9183-x
This paper deals with a stochastic dynamic optimization problem in the context of illegal company financing. Our analysis of the usury phenomenon is conducted by searching for the best interest rate which an illegal financier should apply to a company in order to bring about the firm’s bankruptcy whilst still securing the maximum wealth for the firm’s guarantee. In this case, the company itself can be taken over and used by the financier for illegal activities. Because of the highly complex nature of the problem, the analysis will be performed via simulation studies.
| Original language | English |
|---|---|
| Pages (from-to) | 265-277 |
| Journal | European Journal of Law and Economics |
| DOIs | |
| Publication status | Published - Oct 2012 |
| Externally published | Yes |
Keywords
- stochastic dynamics optimization problem
- usury
- external financing of companies
- bankruptcy