An Economic Analysis of Financial Structure - How Moral Hazard Influences Financial Structure in Debt Markets
4 important questions on An Economic Analysis of Financial Structure - How Moral Hazard Influences Financial Structure in Debt Markets
Why are debt contracts still subject to Moral Hazard?
How can we solve Moral Hazard in Debt Contracts?
• Monitoring and enforcement of restrictive covenants: (dis(en)courage (un)desirable behaviour, keep collateral value, provide information)
• Financial intermediation (banks kan make private loans, no free-rider problem)
Why developing countries experience low rates of economic growth?
- Higher grades + faster learning
- Never study anything twice
- 100% sure, 100% understanding
How does financial repression happen?
- Poor system of property rights
- Poor legal system
- Weak accounting standards
- Government intervention through directed credit programs and state owned
banks
The question on the page originate from the summary of the following study material:
- A unique study and practice tool
- Never study anything twice again
- Get the grades you hope for
- 100% sure, 100% understanding
![Trustpilot Logo](/images/design_2020/lp/clp-trustpilot-en.png)