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Handbook of Financial Intermediation and Banking by Arnoud Boot, Anjan V. Thakor

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CHAPTER 1 The Design of Debt Contracts

Paolo Fulghieri

University of North Carolina, Chapel Hill

Eitan Goldman

Indiana University, Bloomington

We would like to thank Franklin Allen and Merih Sevilir for very helpful comments, and Hung-Chia (Scott) Hsu for excellent research assistance.

1. INTRODUCTION

From the seminal work ...

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