Canonical macroeconomic and financial models require credit to be equal to its fundamental component, i.e., the net present value of the net flows to creditors. Per this conventional view, credit booms are expected to precede increased flows to creditors. However, data suggests otherwise. To...

We study how past experiences with privacy shocks affect individuals’ likelihood to take precautionary behavior when faced with a new privacy shock in the context of credit markets. We focus on experiences with identity theft and data breaches, two kinds of privacy shocks that either directly...

We examine whether banks manage climate transition risk by securitizing corporate loans. We present two novel results. First, banks are more likely to securitize loans when borrowers increase their carbon emission intensity. Second, securitization serves as a vehicle to shift transition risk,...

This paper studies how past experiences with privacy shocks affect individuals’ take-up of precautionary behavior when faced with a new privacy shock in the context of credit markets. We focus on experiences with identity theft and data breaches, two kinds of privacy shocks that either...

This is an Internet Appendix with additional tables for Zhang, Zhang, and Zhao (2022, available at https://ssrn.com/abstract=3519341). The abstract of the paper is as follows:Using a dataset on syndicated loan primary market pricing adjustments, we examine whether relationship banks’...

We use survey data from China households to investigate the impact of financial literacy on household energy efficiency. We aggregate the household energy use and carbon emissions after calculating the energy intensity and carbon intensity of the related sectors of household expenditure using...

We investigate the relationship between access to credit and wealth accumulation. Empirical results suggest an asymmetric heterogeneity over the whole range of wealth distribution. There is a significantly negative relationship between household debt and wealth accumulation for poor households...

We study the differential impact of exchange rate volatility on cost efficiency and market structure when banks have non-trivial exposures to foreign currency operations. First, we document that cost efficiency estimates are both severely downward biased by 30% on average and generally not rank...

Credit markets typically freeze in recessions: access to credit declines and the cost of credit increases. A conventional policy response is to rely on monetary tools to saturate financial markets with liquidity. Given limited space for monetary policy in the current economic conditions, we...

This paper studies the effect of increased application costs on small business loan demand. Using data on loan applications, I find that applicants disproportionately choose loan amounts just below thresholds where credit underwriting requires supplementary information from applicants and...