a model in which this dependence is the result of an unobserved credit cycle: When times are bad, the default … ignoring the dynamic nature of credit risk could lead to a severe underestimation of credit risk (e.g. by a factor of up to 1 ….7 in terms of the 95% VaR). Also, the model indicates that the credit cycle is related to but distinct from the business …

incentive effect of competition on innovation and the effect competition has on the degree of credit rationing. I find that the …

selection forces creditors to ask for collateral. We study the two-way interaction between rationing in the credit market and … the wages offered in the labour market. Both pooling and separating credit contracts can be offered in equilibrium. The …

credit in competitive markets. The model implies that trade credit and bank credit can be either complements or substitutes … credit even when the borrowing rate exceeds the lending rate. Finally, the model suggests reasons for why trade credit is … more prevalent in less developed credit markets and for why accounts payable of large unrated firms are more …

inequalities cannot persist (just as in a neoclassical growth model). But if effort is not contractible the ability to commit is an … increasing function of initial wealth so that in equilibrium poorer agents face tougher credit rationing and take smaller …

Further integration in the European Union (EU) increasingly depends on public legitimacy. The global financial crisis … and the subsequent euro area crisis have amplified both the salience and the redistributive consequences of decisions … contribution, we examine how public opinion has responded to the crisis, focusing on support for monetary integration …

about the industry are rationally updated. If the industry is strong, confidence builds up. Initially this spurs growth. But … increasingly confident managers end up requesting very large rents, which curb the growth of the speculative sector. If rents … fragile, eventually there is a crisis, and the industry shrinks. Our model thus captures important stylized facts of the …

The main aim of this paper is to contribute to the ongoing debate on the facets of the Greek crisis via an analysis of …