A simple model of lending with endogenous screening predicts that risk-neutral banks tend to adopt tighter lending standards under several conditions commonly seen in recessions: lower interest rates (or spreads), higher default rates, or a smaller fraction of good borrowers. Historical data...

Using data from US labour market areas, we quantify empirical associations between entry by small firms and a vector of economic performance measures encompassing levels, volatilities and growth rates of several income and employment variables. Distinct and robust associations are found for net...

Previous work has shown that, when firms choose only partial compliance with a regulatory standard, tightening the standard may drive firms' behavior in the wrong direction. This note explores the potential of nonlinear penalty functions to move behavior in the socially desired direction when...