New Papers from the Payment Cards Center of the Philadelphia Federal Reserve Bank

The Payment Cards Center of the Federal Reserve Bank of Philadelphia has published two new papers. The first, titled "Bankruptcy: Is It Enough to Forgive or Must We Also Forget?", authors Ronel Elul and Peiro Gottardi develop a model in which entrepreneurs must repeatedly seek external funds to finance a sequence of risky projects under conditions of both adverse selection and moral hazard. The second, titled "Competitive Effects of Basel II on U.S. Bank Credit Card Lending", by William W. Lang, Loretta J. Mester, and Todd A. Vermilyea analyzes the potential competitive effects of the proposed Basel II capital regulations on U.S. bank credit card lending.