Three important developments will influence social policy in Germany during the coming century: population aging, a growing mobility and diversity of life and earnings histories, and an increasing awareness of economic incentives even in social policy. We claim that these challenges can only be...

This paper analyses banks' choice between lending to firms in exclusive relationships and sharing financing with other banks in a context where both firms and banks are subject to moral hazard problems, and bank monitoring is essential for financing to take place. Multiple-bank lending is...

This paper investigates a firm's choice between borrowing from a single bank and from two banks. The focus is on how this decision affects banks' equilibrium monitoring intensities and loan rates. Two-bank lending suffers from duplication of effort and sharing of monitoring benefits, but it...