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robust and comes with more realistic interest rate dynamics. Agents productivities as workers and entrepreneurs evolve …
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The standard situation of ex post information asymmetry between borrowers and lenders is extended by risk aversion and heterogenous levels of reservation utility of lenders. In a situation of direct contracting optimal incentive compatible contracts are valuable for both, borrowers and lenders....
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I propose a theory that shows for financially constrained firms, a lower tax rate on cash returns can cause firms to …, the theory suggests that multinational firms' effective risk-aversion was reduced and they had the incentive to increase …
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