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evidence that: (1) fees are used to Price options embedded in loan contracts such as the draw-down option for credit lines and … the cancellation option in term loans; and (2) fees are used to screen borrowers about the likelihood of exercising these …
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evidence that: (1) fees are used to price options embedded in loan contracts such as the draw-down option for credit lines and … the cancellation option in term loans; and (2) fees are used to screen borrowers about the likelihood of exercising these …
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We examine the ability of policymakers to stimulate household borrowing and spending during the Great Recession by reducing banks' cost of funds. Using panel data on 8.5 million U.S. credit card accounts and 743 credit limit regression discontinuities, we estimate the marginal propensity to...
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