This paper analyses the determinants of collateral in loans granted to entrepreneurs and consumers. We use cross … score, are more likely to pledge collateral. At the same time, wealthier borrowers are more likely to pledge collateral in … order to benefit from a reduction in their interest costs. We also present evidence on other determinants of collateral such …

We investigate how well social collateral does as an alternative to traditional physical collateral. We do so by … collateral: doubling the number of cosigners halves the probability of arrears for high risk borrowers. We then distinguish … between different theories of social collateral. Cosigners may be effective as a monitoring device (a borrower would pay to …