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
收藏
页码：49 / 84
页数：36
相关论文
共 50 条
12345