Small firms, borrowing constraints, and reputation

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dc.contributor.author Martinelli, César
dc.contributor.editor Universidad Carlos III de Madrid. Departamento de Economía
dc.date.accessioned 2009-04-14T15:07:49Z
dc.date.available 2009-04-14T15:07:49Z
dc.date.issued 1995-10
dc.identifier.issn 2340-5031
dc.identifier.uri http://hdl.handle.net/10016/3949
dc.description.abstract This paper presents a simple model relating firm age with firm size and access to credit markets. Lending to new firms is risky because lenders have had no time to accumulate observations about them. As a result, interest rates are high and loans are small for entering firms. As firms need credit to operate, credit markets impose a limit on the scale of operation of new firms. Reputation building by the firms allows markets to overcome these difficulties over time. Large firms face lower interest rates than small firms, and credit markets fluctuations are shown to have different effects on firms of different size.
dc.format.mimetype application/pdf
dc.language.iso eng
dc.relation.ispartofseries UC3M Working Paper. Economics;
dc.relation.ispartofseries 1995-44-26
dc.rights Atribución-NoComercial-SinDerivadas 3.0 España
dc.rights.uri http://creativecommons.org/licenses/by-nc-nd/3.0/es/
dc.subject.other Small Firms
dc.subject.other Credit Markets
dc.subject.other Borrowing Constraints
dc.subject.other Repeated Games
dc.subject.other Reputation
dc.title Small firms, borrowing constraints, and reputation
dc.type workingPaper
dc.subject.eciencia Economía
dc.rights.accessRights openAccess
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