How Liable Should a Lender Be? The Case of Judgment-Proof Firms and Environmental Risk: Comment

Abstract

In a previously published article in this Review, Rohan Pitchford (1995) develops an interesting model of lender liability and derives an intriguing finding. He shows that when lenders are held liable for the social damages that arise from the actitives of a judgment-proof producer expected social damages may increase not decrease ....................