Pausch, Thilo - Institut für Volkswirschaftlehre, Fakultät für … - 2003
verification, risk.
JEL classification: D4, D8, G14, G33
∗Faculty of Business Administration and Economics, University of Augsburg ….
Keywords: debt contracts, risk aversion, costly state verification, risk.
JEL classification: D4, D8, G14, G33
1 Introduction … (1985) use a
The Lender - Borrower Relationship 2
costly state verification model similar to the one of Townsend (1979) to …