Agarwal, Sumit; Morais, Bernardo; Ruiz, Claudia; Zhang, Jian - 2016
This study investigates the existence of political rents in bank lending, using a comprehensive loan-level data set of …, and lower collateral requirements. Furthermore, political loans exhibit higher default rates. To isolate the bank supply … channel, a rich set of fixed-effects is included with various specifications. The favorable lending increases with the …