Poor access to credit has long been theorized to contribute to poverty and economic inequality. However, costly fringe … credit products like payday loans may be even more harmful. Critics call for strict regulation of such products, while the … empirical evidence on the effects of fringe borrowing is mixed. We use data from a credit bureau on a national sample of …

We examine the impact of credit default swaps (CDS) on lending relationships and credit market efficiency. CDS insulate … threats, which can have positive implications for borrower incentives and credit availability ex ante. However, lenders may … credit constraints and be detrimental to welfare. Our analysis yields a number of empirical implications, some of which have …

firms but not for constrained firms, and trade credit predicts investment, but only for constrained firms. We also find that … unconstrained firms use bank loans to finance trade credit provided to other firms. Our results illustrate alternative mechanisms … that firms employ both as borrowers and lenders (100 words). -- SMEs ; financing constraints ; bank lending ; trade credit …

the use and transmission of information, as well as credit availability for small businesses. Moreover, using a unique …