Machine generated contents note: About the Authors Acknowledgments Preface Part I: The Economic and Legal Framework of Corporate Restructuring and Bankruptcy Chapter 1: Corporate Financial Distress: Introduction and Statistical Background Chapter 2: An Introduction to Leveraged Finance Chapter...

This paper investigates the optimal monetary policy response to a shock to collateral when policymakers act under discretion and face model uncertainty. The analysis is based on a New Keynesian model where banks supply loans to transaction constrained consumers. Our results confirm the...

This paper uses a series of experiments with commercial bank loan officers to test the effect of performance incentives on risk-assessment and lending decisions. The paper first shows that, while high-powered incentives lead to greater screening effort and more profitable lending, their power is...