This paper studies episodes in which aggregate bank credit contracts alongside expanding economic activity-credit …--on average, they occur every five years. By comparison, banking crises take place every eight years on average. Credit reversals …

This paper analyses empirically the effect of judicial efficiency on bank credit contractual terms for the universe of … proceedings across different jurisdictions, the paper uses a spatial regression discontinuity design that compares credit … characteristics. The results show that judicial efficiency is associated with a reduction in the cost of credit as well as with an …

of lenders not observing a borrower's true credit score but only seeing an aggregate credit category. We find that … borrower's credit score. This inference is economically significant and allows lenders to lend at a 140-basis-points lower rate … for borrowers with (unobserved to lenders) better credit scores within a credit category. While lenders infer the most …

degree of credit/maturity transformation. We develop a dynamic model in which an entrepreneur borrows from overlapping …-generation households via layers of funds, forming a credit chain. Each intermediary fund in the chain faces rollover risks from its lenders …. We show that the equilibrium chain length minimizes the run risk for any given contract and find that restricting credit …

Standard economic theory says that unsecured, high-interest, short-term debt -- such as borrowing via credit cards and … transitory income shock of unemployment. Instead, individuals smooth their credit card debt and overdrafts by adjusting … consumption. We first use detailed longitudinal information on debit and credit card transactions, account balances, and credit …