The Loan Size as a Commitment Device.

We model risky lending with costly state verification but without commitment to an audit strategy. The borrower under-reports with a positive probability in the successful state, and the lender audits with a positive probability after a report of failure.

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Year of publication:	1997
Authors:	Khalil, F ; Parigi, B-M
Institutions:	Department of Economics, University of Washington
Subject:	INFORMATION \| CREDIT \| FINANCIAL INSTITUTIONS

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Series:	Working Papers.
Type of publication:	Book / Working Paper
Notes:	21 pages
Classification:	G20 - Financial Institutions and Services. General ; D82 - Asymmetric and Private Information
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005432412