We build a model of competitive pooling, which incorporates adverse selection and signalling into general equilibrium …

Default rates on instalment loans vary with type of the good purchased. Using an Italian dataset of instalment loans … default rates across the different types of goods is due to unobserved individual heterogeneity (selection effect) or due to … more likely to default on any loan, while those buying kitchen appliances, furniture and computers are more likely to repay …

Default rates on instalment loans vary with type of the good purchased. Using an Italian dataset of instalment loans …-specific characteristics, and for the potential selection bias due to credit rationing. We explore whether the residual variation in default … motorcycles on credit are more likely to default on any loan, while those buying kitchen appliances, furniture and computers are …

We study a competitive model in which debt-financed firms may default in some states of nature. Incomplete markets … the only cost of default. The anticipation of such losses alone may distort firms' investment decisions. We characterize …

We study a competitive model in which market incompleteness implies that debt-financed firms may default in some states … of nature and default may lead to the sale of the firms’ assets at fire sale prices when markets are illiquid. This … incompleteness is the only friction in the model and the only cost of default. The anticipation of such losses alone may distort .rms …