Add to ORKGRecently, U.S. environmental law has shown a tendency toward increased lender liability. A model of a potentially judgment-proof owner of a firm, a lender, and a potential victim is developed in which this policy can increase accident frequency and reduce efficiency. Full, partial, and zero lender-liability rules and a minimum equity requirement are analyzed. Partial lender liability and an equivalent minimum equity requirement deliver the highest level of efficiency, although the former can deliver a higher contribution by the lender to the victim than the latter. Policy and empirical implications are also discussed. Copyright 1995 by American Economic Association.
We compare the performance of liability rules for managing environmental disasters when third partie...
To achieve desirable levels of product or environmental safety, our society relies on various system...
This paper reviews the increasing attention given by banks to environmental considerations in the co...
In a previously published article in this Review, Rohan Pitchford (1995) develops an interesting mod...
Abstract. We build a model where lenders employ an imperfect screening technology to elicit informat...
As the full extent of damage resulting from past environmental practices has been realised, governme...
There have been opposing conclusions in the literature as to whether lender liability increases the ...
Should lenders be made liable for environmental damages caused by their customers? In a recent paper...
Firms will exert too little preventive care if damages are likely to exceed their equity. This is pa...
Lenders in the 1990s are increasingly being forced to take notice of environmental risks in their le...
With the deterioration of the environment and increasingly seriously environmental damage, the sprea...
This study explores how an extended liability scheme affects a judgment-proof firm’s precaution leve...
We compare the performance of liability rules for managing environmental disasters when third partie...
A number of countries have recently introduced legislation which holds polluters liable for the cost...
This paper was presented at APFA Finance Conference in 2002 held in Tokyo.There have been opposing c...
We compare the performance of liability rules for managing environmental disasters when third partie...
To achieve desirable levels of product or environmental safety, our society relies on various system...
This paper reviews the increasing attention given by banks to environmental considerations in the co...
In a previously published article in this Review, Rohan Pitchford (1995) develops an interesting mod...
Abstract. We build a model where lenders employ an imperfect screening technology to elicit informat...
As the full extent of damage resulting from past environmental practices has been realised, governme...
There have been opposing conclusions in the literature as to whether lender liability increases the ...
Should lenders be made liable for environmental damages caused by their customers? In a recent paper...
Firms will exert too little preventive care if damages are likely to exceed their equity. This is pa...
Lenders in the 1990s are increasingly being forced to take notice of environmental risks in their le...
With the deterioration of the environment and increasingly seriously environmental damage, the sprea...
This study explores how an extended liability scheme affects a judgment-proof firm’s precaution leve...
We compare the performance of liability rules for managing environmental disasters when third partie...
A number of countries have recently introduced legislation which holds polluters liable for the cost...
This paper was presented at APFA Finance Conference in 2002 held in Tokyo.There have been opposing c...
We compare the performance of liability rules for managing environmental disasters when third partie...
To achieve desirable levels of product or environmental safety, our society relies on various system...
This paper reviews the increasing attention given by banks to environmental considerations in the co...