Mookherjee, Dilip; von Lilienfeld-Toal, Ulf - Verein für Socialpolitik, Ausschuss für … - 2006
Should the law restrict liability of defaulting borrowers? We abstract from possible benefits arising from limited rationality or risk-aversion of borrowers, contractual incompleteness, or lender moral hazard. We focus instead on general equilibrium implications of liability rules with moral...