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Unnatural Selection : Perverse Incentives and the Misallocation of Credit in Japan
Peek, Joe - 2003
This study examines the misallocation of credit in Japan associated with the perverse incentives of banks to provide …
Persistent link: https://www.econbiz.de/10012469055
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Belief Elicitation : Limiting Truth Telling with Information on Incentives
Danz, David - 2020
examine whether information on the offered incentives improves reports about a known objective prior. We find that transparent … information on incentives gives rise to error rates in excess of 40 percent, and that only 15 percent of participants consistently … report the truth. False reports are conservative and appear to result from a biased perception of the BSR incentives. While …
Persistent link: https://www.econbiz.de/10012481521
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Remembering to Pay? Reminders vs. Financial Incentives for Loan Payments
Cadena, Ximena - 2011
We report the results from a field experiment with a micro lender in Uganda to test the effectiveness of privately … implemented incentives for loan repayment. Using a randomized control trial we measure the impact of three different treatments …. The impact of the cash back incentives are stronger for customers with smaller loans and less banking experience, the …
Persistent link: https://www.econbiz.de/10012461638
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Designed to Fail : Effects of the Default Option and Information Complexity on Student Loan Repayment
Cox, James C. - 2018
so. To do so we run an incentivized laboratory experiment using a facsimile of the government's Student Loan Exit …
Persistent link: https://www.econbiz.de/10012480909
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Competitive Lending with Partial Knowledge of Loan Repayment
Brock, William A. - 2008
We study a competitive credit market in which lenders with partial knowledge of loan repayment use one of three decision criteria - maximization of expected utility, maximin, or minimax regret - to make lending decisions. Lenders allocate endowments between loans and a safe asset, while...
Persistent link: https://www.econbiz.de/10012464269
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Framing Effects, Earnings Expectations, and the Design of Student Loan Repayment Schemes
Abraham, Katharine G. - 2018
Income-driven student loan repayment (IDR) plans provide protection against unaffordable loan payments and default by linking loan payments to borrowers' earnings. Despite the advantages IDR would offer to many borrowers, take-up remains low. We investigate how take-up is affected by the framing...
Persistent link: https://www.econbiz.de/10012453231
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Macroeconomic-Driven Prepayment Risk and the Valuation of Mortgage-Backed Securities
Chernov, Mikhail - 2016
We introduce a reduced-form modeling framework for mortgage-backed securities in which we solve for the implied prepayment function from the cross section of market prices. From the implied prepayment function, we find that prepayment rates are driven not only by interest rates, but also by two...
Persistent link: https://www.econbiz.de/10012456578
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Bank Quality, Judicial Efficiency and Borrower Runs : Loan Repayment Delays in Italy
Schiantarelli, Fabio - 2016
Exposure to liquidity risk makes banks vulnerable to runs from both depositors and from wholesale, short-term investors. This paper shows empirically that banks are also vulnerable to run-like behavior from borrowers who delay their loan repayments (default). Firms in Italy defaulted more...
Persistent link: https://www.econbiz.de/10012456640
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Default and Repayment Among Baccalaureate Degree Earners
Lochner, Lance J. - 2014
More than low default rates, lenders are interested in the expected return on their loans. In this paper, we consider a number of other measures of repayment and nonpayment that are likely to be of direct interest to lenders. Using data from the Baccalaureate and Beyond Longitudinal Study, we...
Persistent link: https://www.econbiz.de/10012458781
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Payment Size, Negative Equity, and Mortgage Default
Fuster, Andreas - 2013
Surprisingly little is known about the importance of mortgage payment size for default, as efforts to measure the treatment effect of rate increases or loan modifications are confounded by borrower selection. We study a sample of hybrid adjustable-rate mortgages that have experienced large rate...
Persistent link: https://www.econbiz.de/10012459316