STRUCTURAL VERSUS REDUCED FORM MODELS: A NEW INFORMATION BASED PERSPECTIVE

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Credit Risk Modeling Using Time-Changed Brownian Motion (2009, methodology): “The incomplete information approach of Jarrow and Protter [20] views reduced form methods as arising from structural models when the market has less than perfect information about the firm value.”
PRICING CORPORATE SECURITIES UNDER NOISY ASSET INFORMATION (2009, unknown): “Mathematical Finance, Vol. 19, No. 3 (July 2009), 403–421”
Local martingales and filtration shrinkage (2011, background): “An attempt to relate reduced form models as simply projections of structural models onto a smaller filtration is outlined in [11], and carried out to some extent in [3] and more generally in [13].”
A Market-Based Study of the Cost of Default (2012, background): “…The net cost of default, c, is defined as the difference between the value of assets absent the possibility of default and their value in default: c = V − L. Default may be costly due to transactions costs of arranging a distressed bond exchange, legal fees in bankruptcy, lost sales due to…”
Reduced Form vs. Structural Models of Credit Risk: A Case Study of Three Models (2005, background): “Jarrow and Protter (2004) argue further that reduced-form models are more appropriate in an information theoretic context given that we are unlikely to have complete information about the default point and expected recovery.”