Showing 1 - 10 of 37
downpayment.  In both cases, the resulting excessive consumer leverage impairs household credit access for a lengthy after-shock …
Persistent link: https://www.econbiz.de/10011004401
We develop a model in which cash-constrained entrepreneurs seek a venture capitalist (VC) to finance a new firm. Costly monitoring is employed by VCs to reduce entrepreneurial moral hazard. When monitoring reveals poor performance, VCs want to punish the entrepreneur with liquidation. However,...
Persistent link: https://www.econbiz.de/10010661352
We present a model of cash constrained entrepreneurs who need an investor to finance their project. Investors can either be uninformed, such as individual bondholders, or informed, such as venture capitalists and banks. There is an entrepreneurial moral hazard problem, which can be partially...
Persistent link: https://www.econbiz.de/10010661398
This paper explores the business cycle implications of financial distress and bankruptcy law. We find that due to the presence of financial imperfections the effect of liquidations on the price of capital goods can generate endogenous fluctuations. We show that a law reform that...
Persistent link: https://www.econbiz.de/10011146262
We study how deregulation of corporate law affects the decision of entrepreneurs of where to incorporate.  Recent rulings by the European Court of Justice (ECJ) have enabled entrepreneurs to select their country of incorporation independently of their real seat.  We analyze foreign...
Persistent link: https://www.econbiz.de/10011004403
Financial liberalisation and innovation (FLIB) in Australia over the 1980s and 1990s provided the institutional backdrop for one of the most rapid increases in household balance sheets and house prices in the world.  An equilibrium correction model of quarterly Australian house prices for...
Persistent link: https://www.econbiz.de/10004972472
Where do we stand, five years on from the start of the crisis, on progress towards banking reform? Major advances have been made, but a lot of unfinished business remains, notably on structural reform of banks. Following a stock-take of current reform initiatives, the paper reviews some...
Persistent link: https://www.econbiz.de/10011133044
a novel micro & small enterprise survey from Tanzania we test the empirical implications of this theory.  We find (1 …
Persistent link: https://www.econbiz.de/10011159021
We present a model for Financial fragility in which banks are risk-averse portfolio managers and there is uncertainty over risk management parameters. There is a danger of heightened risk aversion and projects in small economies are assumed to be riskier than those in large economies. In this...
Persistent link: https://www.econbiz.de/10010820278
The objective of this paper is to propose a model to assess risk for banks. Its main innovation is to incorporate endogenous interaction between banks, recognising that the actual risk to which an individual bank is exposed also depends on its interaction with other banks and other private...
Persistent link: https://www.econbiz.de/10010820299