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Give Me a Pass : Flexible Credit for Entrepreneurs in Colombia (Inglés)

Most small firms in developing countries have large month-to-month fluctuations in their income stream due to seasonality and unanticipated positive and negative shocks such as business opportunities, health shocks, etc. While the optimal credit contract with full information would match repayments to cash flows, idiosyncratic and unanticipated shocks are typically hard to verify, and thus full revenue-sharing contracts are typically unavailable...
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