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Austerity
Dellas, Harris; Niepelt, Dirk - 2014
more favourable loan package; that it is associated with over-investment even when investment does not create collateral …
Persistent link: https://www.econbiz.de/10011430112
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Why do borrowers pledge collateral? New empirical evidence on the role of asymmetric information
Berger, Allen N.; Espinosa-Vega, Marco A.; Frame, W. Scott - 2007
An important theoretical literature motivates collateral as a mechanism that mitigates adverse selection, credit … incidence of collateral. We exploit exogenous variation in lender information related to the adoption of an information … technology that reduces ex ante private information, and compare collateral outcomes before and after adoption. Our results are …
Persistent link: https://www.econbiz.de/10010292292
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Multiplicity of mixed equilibria in mechanisms: A unified approach to exact and approximate implementation
Serrano, Roberto; Vohra, Rajiv - 2009
We characterize full implementation of social choice sets in mixedstrategy Bayesian equilibrium. Our results concern both exact and virtual mixed implementation. For exact implementation, we identify a strengthening of Bayesian monotonicity, which we refer to as mixed Bayesian monotonicity. It...
Persistent link: https://www.econbiz.de/10010284058
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Tests of ex ante versus ex post theories of collateral using private and public information
Berger, Allen N.; Frame, W. Scott; Ioannidou, Vasso - 2010
Collateral is a widely used, but not well understood, debt-contracting feature. Two broad strands of theoretical … literature explain collateral as arising from the existence of either ex ante private information or ex post incentive problems … ex post theories of collateral are empirically dominant although the ex ante theories are also valid for customers with …
Persistent link: https://www.econbiz.de/10010292349
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Debt portfolios
Hintermaier, Thomas; Koeniger, Winfried - 2009
We provide a model with endogenous portfolios of secured and unsecured household debt. Secured debt is collateralized by durables whereas unsecured debt can be discharged in bankruptcy procedures. We show that the model matches the main quantitative characteristics of observed wealth and debt...
Persistent link: https://www.econbiz.de/10010280743
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Economics of voluntary information sharing
Liberti, José; Sturgess, Jason; Sutherland, Andrew - 2018
We show that lenders join a U.S. commercial credit bureau when information asymmetries between incumbents and entrants create an adverse selection problem that hinders market entry. Lenders also delay joining when information asymmetries protect them from competition in existing markets,...
Persistent link: https://www.econbiz.de/10012144221
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Who gains from information asymmetry?
Epstein, Gil S.; Mealem, Yosef - 2013
This article considers an asymmetric contest with incomplete information. There are two types of players: informed and uninformed. Each player has a different ability to translate effort into performance in terms of the contest success function. While one player's type is known to both players,...
Persistent link: https://www.econbiz.de/10010336049
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Information transmission in coalitional voting games
Serrano, Roberto; Vohra, Rajiv - 2005
A core allocation of a complete information economy can be characterized as one that would not be unanimously rejected in favor of another feasible alternative by any coalition. We use this test of coalitional voting in an incomplete information environment to formalize a notion of resilience....
Persistent link: https://www.econbiz.de/10010318981
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Expected Life-Time Utility and Hedging Demands In a Partially Observable Economy
Lundtofte, Frederik - Institut für Schweizerisches Bankwesen <Zürich> - 2007
This paper analyzes the expected life-time utility and the hedging demands in an exchange only, representative agent general equilibrium under incomplete information. We derive an expression for the investor’s expected life-time utility, and analyze his hedging demands for intertemporal changes...
Persistent link: https://www.econbiz.de/10005858506
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The Quality of Public Information and the Term Structure of Interest Rates
Lundtofte, Frederik - Institut für Schweizerisches Bankwesen <Zürich> - 2007
This paper analyzes the term structure of interest rates in an exchange-only Lucas (1978) economy where consumers learn about a stochastic growth rate through observations of the endowment process and an external public signal. We allow for deluded consumers, who exaggerate the degree of...
Persistent link: https://www.econbiz.de/10005858508