such risk? When counterparty risk is not observable, I show that central clearing leads to higher collateral requirements … forgo incentives for transactions that use collateral only for insurance. With collusion about risk taking, a CCP needs to … charge collateral in line with the worst counterparty quality to control risk taking. Requiring more collateral reduces …

increases with the opportunity for moral hazard (related to diligence, risk taking, or deception).Second, bankruptcy laws become …

adverse selection (AS). In particular, we study how the level of such exemption affects the role of collateral depending on … higher for borrowers who are requested to post collateral. Moreover, conditional on posting collateral, the cost of credit … does not change with the level of asset exemption. Differently, in the case of AS, the decision to post collateral results …

neglected area of moral hazard; specifically the relationship between risk aversion, an entrepreneur?s wealth and the provision … of collateral. The results highlight some interesting nuances which are not characteristic of the properties of models … be negatively related to an entrepreneur?s initial wealth. Our model shows that banks can use collateral as a means of …

transfer of credit risk will be considered, so that we can equally privilege the critical aspects of security design in the …

to measures of foreclosure process risk including the length of time required to complete foreclosure proceedings within … controlling for these additional dimensions of risk …

We study theoretically and empirically the demand for microcredit under different liability arrangements and risk … when risk-averse borrowers value their long-term relationship with the lender. Joint liability then offers a way to … diversify risk and reduce the chance of losing access to future loans. We also show that the demand for loans depends negatively …