HWANG, JINYOUNG; JIANG, NEVILLE; WANG, PING - In: Economic Inquiry 45 (2007) 4, pp. 691-707
"This study provides a theoretical background for collusion-induced overlending being the main cause of the 1997 Korean financial crisis. Our model consists of a lending institution, a borrowing chaebol of an unknown type, and an informed politician who can influence lending decision. We show...