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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 additional credit to the weakest firms. Firms are far more likely to receive additional credit if they are in poor financial condition, and these firms continue to perform poorly...

Persistent link: https://www.econbiz.de/10012469055

Credit Shocks and Aggregate Fluctuations in an Economy with Production Heterogeneity

Khan, Aubhik - 2011

In the presence of persistent heterogeneity in capital, debt and total factor productivity, the effects of a financial shock are amplified and propagated through large and long-lived disruptions to the distribution of capital that, in turn, imply large and persistent reductions in aggregate...

Persistent link: https://www.econbiz.de/10012461346

Collateral Pricing

Benmelech, Efraim - 2008

We examine how collateral affects the cost of debt capital. Theories based on borrower moral hazard and limited pledgeable income predict that collateral increases the availability of credit and reduces its price. Testing these theories is complicated by the very selection problem which they...

Persistent link: https://www.econbiz.de/10012464773

Discrimination in the Small Business Credit Market

Blanchflower, David G. - 1998

This paper uses data from the 1993 National Survey of Small Business Finances to determine the extent to which minority-owned small businesses face constraints in the credit market beyond those faced by white-owned small businesses. First, we present qualitative evidence indicating that black-...

Persistent link: https://www.econbiz.de/10012471972

Data and Welfare in Credit Markets

Jansen, Mark; Nagel, Fabian; Yannelis, Constantine; … - National Bureau of Economic Research - 2022

We show how to measure the welfare effects arising from increased data availability. When lenders have more data on prospective borrower costs, they can charge prices that are more aligned with these costs. This increases total social welfare, and transfers surplus from borrowers to lenders. We...

Persistent link: https://www.econbiz.de/10013334452

Housing Speculation, GSEs, and Credit Market Spillovers

Amornsiripanitch, Natee; Strahan, Philip E.; Zhang, Song; … - National Bureau of Economic Research - 2024

In 2021, the U.S. Treasury reduced Government Sponsored Enterprises (GSEs) exposure to speculative mortgages. As a result, GSE purchases fell by about 20 percentage points. The policy reduced credit to speculative investors in housing, but increased credit to unaffected parts of the...

Persistent link: https://www.econbiz.de/10014512063

Information Span and Credit Market Competition

He, Zhiguo; Huang, Jing; Parlatore, Cecilia - National Bureau of Economic Research - 2024

We develop a credit market competition model that distinguishes between the information span (breadth) and signal precision (quality), capturing the emerging trend in fintech/non-bank lending where traditionally subjective ("soft") information becomes more objective and concrete ("hard"). In a...

Persistent link: https://www.econbiz.de/10015145092

Strategic Money and Credit Ledgers

Brunnermeier, Markus Konrad; Payne, Jonathan - National Bureau of Economic Research - 2023

This paper studies strategic decision making by a private currency ledger operator, which faces competition from public money and/or other ledgers. A monopoly ledger operator can incentivize contract enforcement across the financial sector by threatening exclusion, but it can also impose markups...

Persistent link: https://www.econbiz.de/10014337794

Some Simple Economics of Crowdfunding

Agrawal, Ajay K. - 2013

, the recent rise of crowdfunding - raising capital from many people through an online platform - which offers little … initially startling. On the eve of launching equity-based crowdfunding, a new market for early-stage finance in the U.S., we … transaction costs, reputation, and market design, can explain the rise of non-equity crowdfunding and offer a framework for …

Persistent link: https://www.econbiz.de/10012459529

Funding Black High-Growth Startups

Cook, Lisa D.; Marx, Matt; Yimfor, Emmanuel - National Bureau of Economic Research - 2022

We analyze determinants of access to venture capital for Black founders of high-growth startups. We combine image- and name-processing algorithms with clerical review to identify race for over 100,000 startup founders "at risk" for venture funding. Black founders raise roughly one-third as much...

Persistent link: https://www.econbiz.de/10013462730