Illegal Finance and Usurers Behaviour

Posted: 19 Jul 2018

See all articles by Raffaella Barone

Raffaella Barone

University of Salento - Department of Law

Roy Cerqueti

Independent

Annagrazia Quaranta

Department of Economics and Law - University of Macerata; University of Macerata

Date Written: October 1, 2012

Abstract

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.

Keywords: Usury, External Financing of Companies, Bankruptcy, Stochastic Dynamics, Optimization Problem

JEL Classification: C61, G32, K42

Suggested Citation

Barone, Raffaella and Cerqueti, Roy and Quaranta, Annagrazia, Illegal Finance and Usurers Behaviour (October 1, 2012). European Journal of Law and Economics, Vol. 34, No. 2, 2012, pp 265–277 , Available at SSRN: https://ssrn.com/abstract=3204322

Raffaella Barone (Contact Author)

University of Salento - Department of Law ( email )

Campus Universitario - Via Li Tufi
LECCE, LE 73020
Italy

Roy Cerqueti

Independent ( email )

Annagrazia Quaranta

Department of Economics and Law - University of Macerata ( email )

Via Armaroli, 43
Macerata, 62100
Italy

University of Macerata ( email )

Via Crescimbeni, 14
Via Armaroli, 43
Macerata, 62100
Italy

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