Bank lending and relationship capital / Mohammed Yasser Boualam.

Format:

Book

Manuscript

Thesis/Dissertation

Author/Creator:

Boualam, Mohammed Yasser, author.

Contributor:

Goldstein, Itay, degree supervisor.

Gomes, Joao F., degree committee member.

Jermann, Urban J., degree committee member.

Menzio, Guido, degree committee member.

University of Pennsylvania. Department of Finance, degree granting institution.

Language:

English

Subjects (All):

Penn dissertations--Finance.

Finance--Penn dissertations.

Local Subjects:

Penn dissertations--Finance.

Finance--Penn dissertations.

Physical Description:

viii, 100 leaves : illustrations ; 29 cm

Production:

[Philadelphia, Pennsylvania] : University of Pennsylvania, 2016.

Summary:

I develop an equilibrium theory of bank lending relationships in an economy subject to search frictions and limited enforceability. The model features a dynamic contracting problem embedded within a directed search equilibrium with aggregate and bank-specific uncertainty. The interaction between search and agency frictions generates a slow accumulation of lending relationship capital and distorts the optimal allocation of credit along both intensive and extensive margins. A crisis characterized by a sizable destruction of lending relationships therefore leads to a significant contraction in credit and a slow recovery, consistent with the Great Recession. I calibrate the model to study aggregate and cross-sectional implications and analyze policies aimed at reviving bank lending.

Notes:

Ph. D. University of Pennsylvania 2016.

Department: Finance.

Supervisor: Itay Goldstein.

Includes bibliographical references.

OCLC:

983526991