Publication Date

11-1994

Journal

Virginia Law Review

Abstract

The article challenges the Law and Economics movement's assertion that secured lending is inefficient, arguing instead that it can be efficient by reducing risk and lowering the cost of credit. Carlson contests the movement's reliance on outdated theories like the Modigliani-Miller model, which he believes fails to account for real-world factors such as time and risk. He posits that secured lending can prevent debtor misbehavior, thereby making credit more accessible and reducing risks for creditors.

Volume

80

Issue

8

First Page

2179

Last Page

2214

Publisher

Virginia Law Review Association

Disciplines

Commercial Law | Law | Law and Economics | Legislation | Natural Law

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