of their loans. The author finds that the sweep covenant is more likely to be imposed on borrowers with higher leverage … (i.e., where risk shifting by equity holders is more likely). The results are robust to including borrower fixed effects …

Does borrowing at 400 percent APR do more harm than good? The Pentagon asserts that payday loans harm military … readiness and successfully lobbied for a binding 36 percent APR cap on loans to military members and their families (effective …

empirical evidence that transactions account information helps the bank to monitor commercial borrowers’ operating loans and we …

scale economies using two production models. The standard risk-neutral model finds little evidence of scale economies. The … model using more general risk preferences and endogenous risk-taking finds large scale economies. The authors show that …

The Great Recession focused attention on large financial institutions and systemic risk. We investigate whether large … economies or too-big-to-fail subsidies. Estimating scale economies is made more complex by risk-taking. Better diversification … resulting from larger scale generates scale economies but also incentives to take more risk. When this additional risk …