This study examines the use of small business credit scoring (SBCS), a newly introduced technology to quantitatively evaluate small businesses applications for micro credits of less than $250,000. Credit scoring statistically predicts the likelihood of borrower default or delinquency. SBCS data...

This paper offers a possible explanation for the conflicting results in the literature concerning the empirical relation between collateral and loan risk. We posit that certain economic characteristics of collateral may be associated with the empirical dominance of different risk-collateral...

Collateral is a widely used, but not well understood, debt contracting feature. Two broad strands of theoretical literature explain collateral as arising from the existence of either ex ante private information or ex post incentive problems between borrowers and lenders. However, the extant...

This paper investigates the consequences of government imposition of multiple reserve requirements on commercial banks. In particular, it examines a situation in which banks are required to hold some fraction of their customer's deposits in the form of domestic currency and another fraction in...

The motivation of this paper rests on the attempts by some groups of countries to coordinate their macroeconomic policies. Implicit in these attempts is the notion that coordination by at least some countries is better than zero coordination. The authors use a dynamic general equilibrium model...

This paper presents a framework that can help reconcile conflicting findings in the growth-inflation literature. Here, the behavior of financial intermediaries plays a crucial role in the determination of the economy's inflation and real growth rates. Absent any restrictions on financial...

This article addresses developments in the literature on The Rise of Market Power. First, it summarizes research about the result of De Loecker 2020 that the sales-weighted average markup has increased in the United States. Second, it summarizes and evaluates a set of industry studies that...