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working paper

(As yet) unpublished academic papers.

Credit from the monopoly bank

Yvan Lengwiler and Kumar Rishabh (2017). WWZ Working Paper No. 2017/15. We establish that a monopoly bank never uses collateral as a screening device. A pooling equilibrium always exists in which all borrowers pay the same interest rate and put zero collateral. Absence of screening leads to socially inefficient lending… Read More »Credit from the monopoly bank