Do Local Capital Market Conditions Affect Consumers’ Borrowing Decisions?
| Autor: | Umit G. Gurun, Alexander W. Butler, Jess Cornaggia |
|---|---|
| Rok vydání: | 2017 |
| Předmět: |
050208 finance
Strategy and Management media_common.quotation_subject 05 social sciences Financial system Detailed data Monetary economics Management Science and Operations Research Affect (psychology) Consumer finance Test (assessment) Interest rate Willingness to pay 0502 economics and business Economics Access to finance Quality (business) Business 050207 economics Capital market media_common |
| Zdroj: | Management Science. 63:4175-4187 |
| ISSN: | 1526-5501 0025-1909 |
| DOI: | 10.1287/mnsc.2016.2560 |
| Popis: | This paper uses detailed data from an online peer-to-peer lending intermediary to test whether local access to finance affects consumers’ willingness to pay for loans. After controlling for local economic conditions and borrower credit quality, we find that borrowers who reside in areas with good access to bank finance request loans with lower interest rates. This effect is stronger for borrowers with poor credit and those seeking small loans, suggesting that local access to finance is more important for marginal borrowers. Overall, our findings shed light on how consumers substitute between alternative sources of finance. This paper was accepted by Wei Jiang, finance. |
| Databáze: | OpenAIRE |
| Externí odkaz: |
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