Berger, Allen N.; Espinosa-Vega, Marco A.; Frame, W. Scott - In: Journal of Financial Intermediation 20 (2011) 1, pp. 55-70
An important theoretical literature motivates collateral as a mechanism that mitigates adverse selection, credit rationing, and other inefficiencies that arise when borrowers have ex ante private information. There is no clear empirical evidence regarding the central implication of this...
