Latchezar Popov

Learn More
This paper studies the effectiveness of longer-term unsecured credit contracts in improving credit access, consumption smoothing, and welfare. I find that longer-term contracts result in higher average borrowing interest rates and hence lower levels of borrowing and fewer borrowers in the equilibrium. In addition, I show that longer-term contracts reduce(More)
We thank the anonymous referee for excellent comments and suggestions that have significantly improved the paper. We would also like to thank the Editor (Abstract In a model of dual agency problems where borrower-lender and bank-nonbank incentives may conflict, we predict a hockey stick relation between bank skin in the game and covenant tightness. As bank(More)
Society for Economic Dynamics meetings in Cyprus. Amanda Kurzendoerfer provided valuable editorial assitance. All errors are ours. Abstract We introduce capital accumulation into an economy where individuals have private information with respect to productivity shocks. Efficient, incentive-compatible risk-sharing is achieved by conditioning current and(More)
This paper incorporates worker selection into a random matching model with multi-worker firms and studies its policy implications. Unlike the standard random matching model, the worker selection model is compatible with establishment-level behavior of the hires-to-vacancy ratio, which (i) steeply rises with the employment growth rate, (ii) falls with(More)
I consider an environment in which contract enforcement is a decision variable for the principal. I construct a model in which entrepreneurs cannot commit to repaying investors for the capital advanced, but investors can force repayment by spending resources. The principal uses enforcement to reduce the resources available to the agent after a default, thus(More)
A programmed change of a certain phase of cortical EP to a photic flash was reinforced in an unrestrained chronically operated animal (a rat) in the course of an operant controlled experiment. A painful subcutaneous stimulation or stimulation of the emotionally positive zone of the lateral hypothalamus was used as a reinforcing agent. It has been shown that(More)