A dynamic model of unsecured credit

Preprint OPEN
Daniel R. Sanches;
  • 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)

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    [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.

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