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increase expected recovery rates on collateral. Using unique data that provides ex-ante appraised liquidation values on secured … that movable collateral, which is less redeployable, susceptible to agency problems, and faster to depreciate, exhibits …
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We show that lenders join a U.S. commercial credit bureau when information asymmetries between incumbents and entrants create an adverse selection problem that hinders market entry. Lenders also delay joining when information asymmetries protect them from competition in existing markets,...
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collateral constraints and endogenous entry and exit. A defining feature of our model is a non-Gaussian process of firm …
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