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"The crisis of 2007-09 has been characterized by a sudden freeze in the market for short-term, secured borrowing. We present a model that can explain a sudden collapse in the amount that can be borrowed against finitely-lived assets with little credit risk. The borrowing in this model takes the...
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, including portfolio theory, accounting, cost of capital, capital structure, compensation, and macroeconomics"--National Bureau …
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. Contrary to the predictions of the existing theory, we find that better judicial enforcement increases the probability of being …
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