Discharge of residual debt: Do private and institutional lenders differ?

With the help of lab experiments we study the impact of discharging insolvent debtors of their residual debt. We investigate the impact of different participation rules and the impact of different types of lenders. We find that higher participation rates encourage risk taking behaviour of borrowers. Higher participation rates also reduce the amount of moonlighting. Most importantly, institutional lenders can suffer more from moonlighting than private lenders.

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Year of publication:	2013
Authors:	Kirchkamp, Oliver ; Prömpers, Henning
Institutions:	Verein für Socialpolitik - VfS

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Extent:	application/pdf
Series:	Annual Conference 2013 (Duesseldorf): Competition Policy and Regulation in a Global Economic Order.
Type of publication:	Book / Working Paper
Classification:	C92 - Laboratory; Group Behavior ; D14 - Personal Finance ; D86 - Economics of Contract: Theory
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10010986039