Gersbach, Hans; Uhlig, Harald - Sonderforschungsbereich 649: Ökonomisches Risiko, … - 2006
moral-hazard problems by securing a portion of a repayment in the case of non-investment. Financial markets operated by … alleviate moral-hazard problems by se-
curing a portion of a repayment in the case of non-investment. Finan-
cial markets …-selection and moral-hazard problem. We examine how
banks and financial markets compete in this credit market. The first type,
called …