insight to analyse the trade credit volume and the contract terms. Our analysis suggests that the most important product … characteristic for explaining trade credit volume and contract terms is the ease with which the seller’s product can be diverted …

lenders, which may make lending altogether unprofitable. Second, banks can have an incentive to offer a debt contract and … additional equity contracts to intermediate debtors, which is in turn dominated by a simple debt contract, only attractive for … seek to avoid the contract with the highest chance of delivery: that contract attracts all bad entrepreneurs. …

We model the emergence of formal insurance institutions as equilibria under limited contract enforceability where … to exist. It also predicts where formal insurance is likely to flourish: insurance groups that hold savings become more … Ethiopian funeral insurance groups and their members to motivate and test our model. Those which hold savings and collect …