Fukuda, Shin'ichi; Kasuya, Munehisa; Nakajima, Jouchi - In: Journal of the Asia Pacific economy 11 (2006) 4, pp. 482-501
When a borrower faces a hold-up problem, deteriorating bank health might reduce a borrower's credit availability. However, a bank with an impaired balance-sheet might attempt to ‘gamble for resurrection’ and hence might increase risky lending to zombie firms. The purpose of this paper is to...