, small, and innovative firms) have a multitude of bank lenders, where one may be special in the sense of relationship lending …. However, theory does not tell us a lot about the economic rationale for relationship lending in the context of multiple bank … financing. To fill this gap, we analyze the optimal debt structure in a model that allows for multiple but asymmetric bank …

labeled a contagion of fear. Using geocoded, microdata on bank distress, we develop metrics that illuminate the incidence of … other words, caused about 41% of the decline in bank lending and about nine-tenths of the decline in the money multiplier …

that considers both diagnostic uncertainty of sellers and the effects of insurance coverage of consumers in a unified … uncertainty decreases the rate of efficient service provision and leads to less trade. In theory, insurance also decreases the …

The number of firm bankruptcies is surprisingly low in economies with poor institutions. We study a model of bank …-firm relationship and show that the bank's decision to liquidate bad firms has two opposing effects. First, the bank receives a payoff …

Why do banks remain passive? In a model of bank-firm relationship we study the trade-off a bank faces when having … defaulting firms declared bankrupt. First, the bank receives a payoff if a firm is liquidated. Second, it provides information … about a firm's type to its competitors. Thereby, asymmetric information between banks is reduced and bank competition …