| 来源类型 | Working Paper |
| 规范类型 | 报告 |
| DOI | 10.3386/w30073 |
| 来源ID | Working Paper 30073 |
| The Endowment Effect and Collateralized Loans | |
| Kevin Carney; Michael Kremer; Xinyue Lin; Gautam Rao | |
| 发表日期 | 2022-05-30 |
| 出版年 | 2022 |
| 语种 | 英语 |
| 摘要 | Collateral requirements play an important role in credit markets. This paper shows that the endowment effect—the phenomenon where owing a good increases one's valuation of it—inhibits demand for loans which use a borrower's existing assets as collateral. Using a field experiment in Kenya, we show that borrowers instead strongly prefer loans collateralized using the new durable assets being financed by the loans themselves. They are willing to pay 9% per month higher interest for such Same-Asset Collateralized Loans (SACLs) despite the endowed and new assets being randomized, and thus similarly valued before ownership. Our findings imply that assets which are difficult to use as collateral—which cannot be financed by SACLs—will be invested in less, even if the borrower has other collateral. We argue that borrowers' preference for SACLs is driven by naivete: they initially perceive that they have little to lose when offered a SACL, but subsequently come to develop an attachment to the new asset, resulting in high repayment effort. Consistent with this, borrowers underestimate their future attachment to an asset before owning it, and SACLs do not have higher default rates despite having higher demand. We derive the conditions under which offering consumers SACLs increases or conversely decreases borrower welfare. |
| 主题 | Microeconomics ; Households and Firms ; Behavioral Economics ; Development and Growth ; Development |
| URL | https://www.nber.org/papers/w30073 |
| 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/587747 |
| 推荐引用方式 GB/T 7714 | Kevin Carney,Michael Kremer,Xinyue Lin,et al. The Endowment Effect and Collateralized Loans. 2022. |
| 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 | ||
| w30073.pdf（776KB） | 智库出版物 | 限制开放 | CC BY-NC-SA | 浏览 | ||
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