Crawford, Gregory S.; Pavanini, Nicola; Schivardi, Fabiano - 2015
We measure the consequences of asymmetric information and imperfect competition in the Italian lending market. We show … that banks' optimal price response to an increase in adverse selection varies with competition. Exploiting matched data on … loans and defaults, we estimate models of demand for credit, loan use, pricing, and firm default. We find evidence of …