Arnold, Lutz G.; Reeder, Johannes; Trepl, Stefanie - In: Economica 81 (2014) 322, pp. 311-328
type="main" xml:id="ecca12075-abs-0001" <p>In the Stiglitz–Weiss (1981) adverse selection model, pure credit rationing cannot arise in equilibrium. We show that this is due to the fact that single-name risks are independent and a well-diversified portfolio contains no risk. We introduce...</p>
