When borrowers are delinquent, senior debtholders prefer liquidation whereas junior debtholders prefer to maintain their option value by delaying resolution or modifying the loan. In the mortgage market, a conflict of interest (“holdup”) arises when servicers of securitized senior liens are...

In this paper, we examine how homestead, personal property, and garnishment laws affect consumer's default behavior by focusing on the credit card market. After controlling for credit supply and quot;shock effectquot; variables we investigate whether consumer propensity for formal and informal...

In this paper, we examine how county unemployment rates affect consumers' delinquency and bankruptcy behavior by focusing on the credit card market. In particular, after controlling for credit supply and shocks like divorce and health coverage we investigate whether consumer propensity for...

To provide some insights to the current debate on consumer bankruptcy laws, this article empirically assesses the importance of state bankruptcy exemption levels on the likelihood of small business owners filing for bankruptcy. We accomplish this with the help of a unique panel data set of over...

To provide further insights into the current debate on consumer bankruptcy, this article empirically assesses the impact of state bankruptcy exemption levels on the likelihood of small business owners filing for bankruptcy. We estimate a proportional hazard model of small business bankruptcy...

Although the impact of social ties on credit markets has been studied, the possibility of contagion through social ties remains unexplored. Examining the Indian caste system and the group loan structure, we find that social ties could turn shocks into a contagion within credit markets: a drought...

This paper examines whether and to what extent loan officers' labor mobility affects the origination and modification of U.S. residential mortgage loans. Our identification relies on a spatial regression discontinuity design instituted by staggered adoption of the inevitable disclosure doctrine...

This paper examines the impact of credit data sharing among competitive banks of different sizes in open banking. Analyzing data from three predecessors of Bank of America, we find that information sharing enhances predictive capabilities and increases market lending profit as the network size...

Information revelation can occur in a variety of ways. For example, in the home mortgage market, borrowers reveal their expected house tenure through their choice of mortgage contracts. As a result, lenders offer a menu of mortgage interest rate and point combinations in an effort to learn...

This paper empirically tests information asymmetries and learning in global commercial real estate markets. We find that foreign investors pay a premium of 3.6%, on average, relative to local investors for comparable properties in local markets. The premiums reflect information disadvantages of...