Mookherjee, Dilip; Lilienfeld-Toal, Ulf von; Visaria, Sujata - Department of Economics, Boston University - 2010
It is generally presumed that stronger legal enforcement of lender rights increases credit access for all borrowers because it expands the set of incentive compatible loan contracts. This result relies on an assumption that the supply of credit is innitely elastic. In contrast, with inelastic...