Working it out: Randomized Modification and Entrepreneurial Effort in a Collateralized Debt Market

For helpful comments, we thank Deniz Aydin, Victor Lyonnet, Pascal Noel, Avantika Pal, Janis Skrastins, Jack Willis, Yufeng Wu; seminar participants at Brown, MIT, Northwestern, Northwestern (Kellogg), NYU, Rice (Jones), The College of Mexico, The JP Morgan Chase Institute, USC (Marshall), Vanderbilt; and conference participants at NBER Summer Institute, Chicago Household Finance Conference, London Business School Summer Symposium, Chicago Entrepreneurship Workshop, RAPS/RCFS Europe Conference, Holden Conference in Finance and Real Estate, Managing in Emerging Markets Conference, Columbia Management, Analytics and Data Conference, and IPA-GPRL 2024 Research Gathering. We also thank Jialu Sun for the excellent research assistance. We gratefully acknowledge financial support from the Dartmouth Rockefeller Center, the Financial Institutions and Markets Research Center at Northwestern Kellogg School of Management, Fuqua School of Business Dean's Fund and the Crown Fund at Duke University. Special thanks to the management and staff of the cooperating lender for implementing the experimental protocols and sharing data. We pre-registered the field experiment component of this study as AEARCTR-0013052. The views expressed herein are those of the authors and do not necessarily reflect the views of the National Bureau of Economic Research.

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