Liquidity Constraints and Imperfect Information in Subprime Lending

被引：140

作者：

Adams, William ^{[1
]}

Einav, Liran ^{[2
,3
]}

Levin, Jonathan ^{[2
,3
]}

机构：

[1] Citigroup Inc, New York, NY 10013 USA

[2] Stanford Univ, Dept Econ, Stanford, CA 94305 USA

[3] Natl Bur Econ Res, Cambridge, MA 02138 USA

来源：

AMERICAN ECONOMIC REVIEW | 2009年 / 99卷 / 01期

关键词：

HOUSEHOLD CONSUMPTION; CREDIT; MARKET; INSURANCE; BEHAVIOR;

D O I：

10.1257/aer.99.1.49

中图分类号：

F [经济];

学科分类号：

02 ;

摘要：

We present new evidence on consumer liquidity constraints and the credit market conditions that might give rise to them. We analyze unique data from a large auto sales company serving the subprime market. Short-term liquidity appears to be a key driver of consumer behavior. Demand increases sharply during tax rebate season and purchases are highly sensitive to down-payment requirements. Lenders also face substantial informational problems. Default rates rise significantly with loan size, providing a rationale for loan caps, and higher-risk borrowers demand larger loans. This adverse selection is mitigated, however, by risk-based pricing. (JEL D14, D82, D83, G21)

引用

页码：49 / 84

页数：36

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