Testing for Adverse Selection and Moral Hazard in Consumer Loan Markets PDF Download

Are you looking for read ebook online? Search for your book and save it on your Kindle device, PC, phones or tablets. Download Testing for Adverse Selection and Moral Hazard in Consumer Loan Markets PDF full book. Access full book title Testing for Adverse Selection and Moral Hazard in Consumer Loan Markets by Wendy Edelberg. Download full books in PDF and EPUB format.

Testing for Adverse Selection and Moral Hazard in Consumer Loan Markets

Testing for Adverse Selection and Moral Hazard in Consumer Loan Markets PDF Author: Wendy Edelberg
Publisher:
ISBN:
Category : Consumer credit
Languages : en
Pages : 62

Book Description


Testing for Adverse Selection and Moral Hazard in Consumer Loan Markets

Testing for Adverse Selection and Moral Hazard in Consumer Loan Markets PDF Author: Wendy Edelberg
Publisher:
ISBN:
Category : Consumer credit
Languages : en
Pages : 62

Book Description


Does the Good Matter?

Does the Good Matter? PDF Author: Alena Bičáková
Publisher:
ISBN:
Category :
Languages : en
Pages :

Book Description


Moral Hazard in Health Insurance

Moral Hazard in Health Insurance PDF Author: Amy Finkelstein
Publisher: Columbia University Press
ISBN: 0231538685
Category : Medical
Languages : en
Pages : 161

Book Description
Addressing the challenge of covering heath care expenses—while minimizing economic risks. Moral hazard—the tendency to change behavior when the cost of that behavior will be borne by others—is a particularly tricky question when considering health care. Kenneth J. Arrow’s seminal 1963 paper on this topic (included in this volume) was one of the first to explore the implication of moral hazard for health care, and Amy Finkelstein—recognized as one of the world’s foremost experts on the topic—here examines this issue in the context of contemporary American health care policy. Drawing on research from both the original RAND Health Insurance Experiment and her own research, including a 2008 Health Insurance Experiment in Oregon, Finkelstein presents compelling evidence that health insurance does indeed affect medical spending and encourages policy solutions that acknowledge and account for this. The volume also features commentaries and insights from other renowned economists, including an introduction by Joseph P. Newhouse that provides context for the discussion, a commentary from Jonathan Gruber that considers provider-side moral hazard, and reflections from Joseph E. Stiglitz and Kenneth J. Arrow. “Reads like a fireside chat among a group of distinguished, articulate health economists.” —Choice

Testing for Adverse Selection with "unused Observables"

Testing for Adverse Selection with Author: Amy Finkelstein
Publisher:
ISBN:
Category : Adverse selection (Insurance)
Languages : en
Pages : 35

Book Description
This paper proposes a new test for adverse selection in insurance markets based on observable characteristics of insurance buyers that are not used in setting insurance prices. The test rejects the null hypothesis of symmetric information when it is possible to find one or more such "unused observables" that are correlated both with the claims experience of the insured and with the quantity of insurance purchased. Unlike previous tests for asymmetric information, this test is not confounded by heterogeneity in individual preference parameters, such as risk aversion, that affect insurance demand. Moreover, it can potentially identify the presence of adverse selection, while most alternative tests cannot distinguish adverse selection from moral hazard. We apply this test to a new data set on annuity purchases in the United Kingdom, focusing on the annuitant's place of residence as an "unused observable." We show that the socio-economic status of the annuitant's place of residence is correlated both with annuity purchases and with the annuitant's prospective mortality. Annuity buyers in different communities therefore face different effective insurance prices, and they make different choices accordingly. This is consistent with the presence of adverse selection. Our findings also raise questions about how insurance companies select the set of buyer attributes that they use in setting policy prices. We suggest that political economy concerns may figure prominently in decisions to forego the use of some information that could improve the risk classification of insurance buyers.

Asymmetric Information and the Market Structure of the Banking Industry

Asymmetric Information and the Market Structure of the Banking Industry PDF Author: Mr.Giovanni Dell'Ariccia
Publisher: International Monetary Fund
ISBN: 145195154X
Category : Business & Economics
Languages : en
Pages : 32

Book Description
The paper analyzes the effects of informational asymmetries on the market structure of the banking industry in a multi-period model of spatial competition. All lenders face uncertainty with regard to borrowers’ creditworthiness, but, in the process of lending, incumbent banks gather proprietary information about their clients, acquiring an advantage over potential entrants. These informational asymmetries are an important determinant of the industry structure and may represent a barrier to entry for new banks. The paper shows that, in contrast with traditional models of horizontal differentiation, the steady-state equilibrium is characterized by a finite number of banks even in the absence of fixed costs.

Complex Mortgages (CM)

Complex Mortgages (CM) PDF Author: Gene Amromin
Publisher: DIANE Publishing
ISBN: 1437987850
Category : Business & Economics
Languages : en
Pages : 57

Book Description
CM became a popular borrowing instrument during the bullish housing market of the early 2000s but vanished rapidly during the subsequent downturn. These non-traditional loans (interest only, negative amortization, and teaser mortgages) enable households to postpone loan repayment compared to traditional mortgages and hence relax borrowing constraints. But, they increase household leverage and heighten dependence on mortgage refinancing. CM were chosen by prime borrowers with high income levels seeking to purchase expensive houses relative to their incomes. Borrowers with CM experience substantially higher ex post default rates than borrowers with traditional mortgages with similar characteristics. Illus. This is a print on demand report.

Essays on Consumer Credit Markets

Essays on Consumer Credit Markets PDF Author: Mark William Jenkins
Publisher: Stanford University
ISBN:
Category :
Languages : en
Pages : 135

Book Description
This dissertation studies the organization of consumer credit markets using a rich and novel dataset from a large subprime auto lender. Its primary goal is to develop empirical methods for analyzing markets with asymmetric information and to use these methods to better understand the behavior of subprime borrowers and lenders. The first chapter quantifies the importance of adverse selection and moral hazard in the subprime auto loan market and shows how different loan contract terms serve to mitigate these distinct information problems. The second chapter examines the impact of centralized credit scoring on lending outcomes, including the distribution of performance across dealerships within the firm. The third chapter studies borrower repayment behavior and quantifies the impact of ex post moral hazard on interest rates and the costs of default. Collectively, the three chapters provide a better understanding of the functioning of markets for subprime credit in the U.S. They also provide unique empirical evidence on the importance of asymmetric information and the value of screening, monitoring, and contract design in consumer credit markets in general.

The Oxford Handbook of Entrepreneurial Finance

The Oxford Handbook of Entrepreneurial Finance PDF Author: Douglas Cumming
Publisher: OUP USA
ISBN: 0195391241
Category : Business & Economics
Languages : en
Pages : 937

Book Description
Provides a comprehensive picture of issues dealing with different sources of entrepreneurial finance and different issues with financing entrepreneurs. The Handbook comprises contributions from 48 authors based in 12 different countries.

Observing Unobservables

Observing Unobservables PDF Author: Dean S. Karlan
Publisher:
ISBN:
Category : Consumer credit
Languages : en
Pages : 0

Book Description


New Challenges for the Banking Industry

New Challenges for the Banking Industry PDF Author: Santiago Carbó-Valverde
Publisher: Springer Nature
ISBN: 3031329317
Category : Business & Economics
Languages : en
Pages : 351

Book Description
This book aims to enrich the banking and finance literature by gathering insights in new research topics being undertaken in the aftermath of the Covid-19 pandemic. The book spans all the major research fields in finance and banking with a particular focus on corporate governance, sustainability and innovation. The book brings together academics at a range of European universities and stems from research presented at the 2022 Annual Conference of the Wolpertinger Club. The first part focuses on the impact of banks’ corporate governance practice on their performance, including pay gaps as well as diversity and ESG policies. The second part examines how banks are conducting their green transition with topics including reputational risk, greenwashing, green bonds, and ESG scores. The final section of the book considers the role of digitalization and innovative technologies in creating unprecedented disruption in the banking sector. This edited collection is valuable to those researching in finance, banking and business, as well as policymakers and operational decision makers at financial institutions.