We document public welfare spending as an important growth driver of FinTech lending. Examining the UK austerity program, we show that the gradual uneven rollback of the welfare state since 2010 is significantly associated with the rise in demand for peer-to-peer (P2P) consumer loans among...

In this paper, we use the axioms introduced in Eisenberg and Noe (2001) and Rogers and Veraart (2013) and study their consequences in terms of optimal sets of defaulting firms. We show that, from this point of view, the Absolute Priority axiom is not independent. We also show that the optimal...