Banerjee, Abhijit V.; Ghatak, Maitreesh - London School of Economics and Political Science - 2003
We show that the effect of eviction threats on unobservable investment effort can be positive. Wedemonstrate this … apparently counter-intuitive result in a model of tenancy where investment by atenant in the current period raises the chances of … attractive forhim to elicit investment effort. However, there is a direct negative effect of eviction threats on thetenant …