Series: IMF Working Papers
Author(s): Philip Schellekens
Publisher: INTERNATIONAL MONETARY FUND
Publication Date: 01 July 2000
Keywords: Debt Finance, Collateral, Credit Constraints, Asset Price Volatility, entrepreneur, entrepreneurs
This paper addresses two complications arising from the use of collateral requirements in debt contracts between wealth-constrained entrepreneurs and banks. First, costly asset liquidation is found to enhance the s...