Banerjee, Abhijit V.; Ghatak, Maitreesh - 2008
We show that the effect of eviction threats on unobservable investment effort can be positive. We demonstrate this … apparently counter-intuitive result in a model of tenancy where investment by a tenant in the current period raises the chances … attractive for him to elicit investment effort. However, there is a direct negative effect of eviction threats on the tenant …
