| 来源类型 | Working Paper |
| 规范类型 | 报告 |
| DOI | 10.3386/w14378 |
| 来源ID | Working Paper 14378 |
| Competitive Lending with Partial Knowledge of Loan Repayment | |
| William A. Brock; Charles F. Manski | |
| 发表日期 | 2008-10-02 |
| 出版年 | 2008 |
| 语种 | 英语 |
| 摘要 | We study a competitive credit market in which lenders with partial knowledge of loan repayment use one of three decision criteria - maximization of expected utility, maximin, or minimax regret - to make lending decisions. Lenders allocate endowments between loans and a safe asset, while borrowers demand loans to undertake investments. Borrowers may incompletely repay their loans when investment productivity turns out to be low ex post. We characterize market equilibrium, the contracted repayment rate being the price variable that equilibrates loan supply and demand. Supposing that a public Authority wants to maximize the net social return to borrowing, we study two interventions in the credit market to achieve this objective. One intervention manipulates the return on the safe asset and the other guarantees a minimum loan return to lenders. In a simple scenario, we find that manipulation of the return on the safe asset can be an effective way to achieve the socially desired outcome if lender beliefs about the return to lending are not too pessimistic relative to the beliefs of the Authority. Contrariwise, guaranteeing a minimum loan return can be effective if lender beliefs are not too optimistic relative to the beliefs of the Authority. |
| 主题 | Macroeconomics ; Money and Interest Rates ; Financial Economics ; Portfolio Selection and Asset Pricing ; Financial Markets ; Public Economics |
| URL | https://www.nber.org/papers/w14378 |
| 来源智库 | National Bureau of Economic Research (United States) |
| 引用统计 | |
| 资源类型 | 智库出版物 |
| 条目标识符 | http://119.78.100.153/handle/2XGU8XDN/572053 |
| 推荐引用方式 GB/T 7714 | William A. Brock,Charles F. Manski. Competitive Lending with Partial Knowledge of Loan Repayment. 2008. |
| 条目包含的文件 | ||||||
| 文件名称/大小 | 资源类型 | 版本类型 | 开放类型 | 使用许可 | ||
| w14378.pdf（149KB） | 智库出版物 | 限制开放 | CC BY-NC-SA | 浏览 | ||
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