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. …

rates display a high degree of serial correlation, or `persistence'; (2) the average rate of unemployment has been higher in … long-run unemployment rate is independent of the level of productivity and the magnitude of the labour force. The model … also generates other empirically testable hypotheses, concerning cyclical variations in unemployment persistence, the …

conditions, there exists a first-best contract which takes the form of a bonus contract. In the latter, we show that there exists … no first-best contract and we use a numerical approximation to study the properties of the second-best contract … conditions, there exists a first-best contract which takes the form of a bonus contract. In the latter, we show that there exists …