Carling, Kenneth; Jacobson, Tor; Roszbach, Kasper - Economics Institute for Research (SIR), … - 1998
A bank that lends money to a household faces two types of risk. Most commonly mentioned is the risk of a default. Hardly ever referred to is the risk of an early redemption of the loan - leading to dormancy. We model consumer loans' transition from an active to a dormant state and estimate a...
