Bertsch, Christoph; Hull, Isaiah; Qi, Yingjie; Zhang, Xin - 2017
We study the impact of trust on the expansion of online lending in the U.S. over the 2008-2016 period. Using data from … the largest platform, we demonstrate that a misconduct-driven decline of trust in traditional banking is associated with a … statistically and economically significant increase in online lending at the state level. To the contrary, increased social trust …