Kjenstad, Einar C.; Su, Xunhua; Zhang, Li - In: The Quarterly Review of Economics and Finance 55 (2015) C, pp. 20-27
the borrower, so the borrower always demands a larger loan than what the lender can offer. Furthermore, agency cost raises … this excess demand for a given interest rate. If the agency cost is sufficiently high, the borrower is unable to obtain the …