For a risk neutral lender and a group of borrowers facing identical revenue risks we compare individual loans and group lending. We stress the importance of group liquidity in defining the necessary risk premium. There are no welfare differences between the loan forms. However, the default rates...

Building upon a detailed empirical analysis of the local understanding of hazards in one geographical area, in this paper we offer a critique of both the psychometric and 'risk society' approaches to the relationship between lay and scientific groups. Specifically, we explore the connection...

This paper shows that if the difference of two positive semidefinite matrices is positive semidefinite then the difference of their generalized inverses is negative semidefinite. It uses this to compare comparative static behavior over feasible sets whose distance functions have Hessians with a...