Gersbach, Hans; Uhlig, Harald - Sonderforschungsbereich 649: Ökonomisches Risiko, … - 2006
Humboldt University, Berlin,
Deutsche Bundesbank, CentER and CEPR
Keywords: contract, debt contract, adverse selection,
moral … decide whether or not
to issue debt on behalf of entrepreneurs. In contrast to standard banks, invest-
ment banks in … financial markets only interact with entrepreneurs at the stage
when debt contracts are issued and do not engage in continuous …