determination of these credit limits jointly with default in the presence of one-period debt. I adapt the standard incomplete … positive default coexist. A numerical exercise illustrates the consequences of various factors for indebtedness, credit limits …

This paper measures the importance of bank-firm relationships in obtaining higher credit “limits.” We use data from a … relatively unused section of the National Survey of Small Business Finance (NSSBF, 1993) on credit limits, credit sources, and … credit limits. We check for the robustness of our results to outliers, sample selection, and stratification across firm …

imposing credit limits creates nonlinearities that can cause prices to oscillate even in the absence of external information. …