Matthey, Astrid - Sonderforschungsbereich 649: Ökonomisches Risiko, … - 2008
banks may be able to separate firms by self selection, enter the market, and obtain profits in equilibrium despite their …
Keywords: public banks, state guarantee, self-selection
⁄Max-Planck-Institute of Economics. Corresponding address: matthey … the private banks’ loan. Hence, private banks can induce flrms
to separate by self-selection and lend only to safe flrms …