A dynamic model of unsecured credit

Preprint OPEN
Daniel R. Sanches;
(2010)
  • Subject: Credit ; Contracts

The author studies the terms of credit in a competitive market in which sellers (lenders) are willing to repeatedly finance the purchases of buyers (borrowers) by engaging in a credit relationship. The key frictions are: (i) the lender is unable to observe the borrower'... View more
  • References (3)

    [5] A. Atkeson and R. Lucas. “E¢ ciency and Equality in a Simple Model of E¢ cient Unemployment Insurance” Journal of Economic Theory 66 (1995) 64-88.

    [7] A. Berger. “The Economic E¤ects of Technological Progress: Evidence from the Banking Industry” Journal of Money, Credit, and Banking 35 (2003) 141-176.

    [8] S. Chatterjee, D. Corbae, and J.V. Ríos-Rull. “A Finite-Life Private-Information Theory of Unsecured Consumer Debt” Journal of Economic Theory 142 (2008) 149-177.

  • Metrics
Share - Bookmark