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Risk exposure, competition and low pricing

The project studies the determinants of the dispersion in interest rates underlying bank credit to non-financial firms and the implications of such dispersion for corporate real investments. The project first documents the role of financial constraints, the risk exposure of banks and local competition for the pricing of loans with a particular attention on loans of different maturity. The seconf objective of the project is to understand the real effects of exogenous changes to these determinants for the size and type of corporate real investments.