This paper analyzes the relation between the quality of the legal enforcement of loan contracts and the allocation of credit to households, both theoretically and empirically. We use a model of household credit market with secured debt contracts, where the judicial system affects the cost...

The paper investigates the determinants of trade credit and its interactions with borrowing constraints and the input combination of the firm, within an incomplete contract setting in which firms use a two-input technology and collateralised credit contracts. Assuming that the supplier is better...

Using a panel data set of U.S. non-financial firms with geographically segmented firm-level information on currency exposures, exchange rates, and foreign currency derivatives, we document that managers adjust derivatives holdings in response to past foreign exchange returns. We interpret this...