behavior in the car market. We show that a social planner can use leasing contracts to improve welfare but they are imperfect … tools; they cannot generally achieve first best while other mechanisms can. We also show that a producer with market power … can benefit from leasing contracts for two reasons: better pricing of the option of keeping the used good, and market …

credit market. A small amount of infant industry protection is shown to be welfare improving, and the optimal infant industry …

the information asymmetry between market players. Although the P2P platform (Prosper.com) discloses part of borrowers …' credit histories, lenders face serious information problems because the market is new and subject to adverse selection … relative to offline markets. We find that early lenders did not fully understand the market risk but lender learning is …

Credit market freezes in which debt issuance declines dramatically and market liquidity evaporates are typically … observed during financial crises. In the financial crisis of 2008-09, the structured credit market froze, issuance of corporate …

This paper develops a dynamic general equilibrium model that is intended to help clarify the role of credit market … allows us to study how credit market frictions may influence the transmission of monetary policy. In addition, we allow for …

noticeable difference among the alternative specifications is that the complete-asset-market model induces smoother consumption …

We study a market for funding real investment in which valuation creates information on which adverse selection can … occur. Unlike in previous models, higher amounts of valuation are associated with lower market prices and so greater returns …