We apply a disequilibrium model of credit demand and supply to test the credit crunch hy- pothesis. We suppose that … firms face credit rationing and a realised outstanding loan will be the minimum desired level of commercial bank loans and … bank limit for the firm. We adopted the disequilibrium model which consists of credit supply and credit demand equations …

Communal responsibility, a medieval institution studied by Greif (2006), supported the use of credit among European …. Enforceability within each village's centralized afternoon market ensures collateralization of credit in decentralized markets. In … the resulting equilibrium, money and credit coexist in decentralized markets if the use of credit is costly. Our analysis …