Showing 1 - 9 of 9
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The access to credit and financial services play a critical role in fostering economic growth and maintaining economic stability. The ability to obtain credit at a fair price and terms has remained one of the most powerful determinants of economic opportunity, income generation, wealth creation...
Persistent link: https://www.econbiz.de/10009429991
Credit-rationing model similar to Stiglitz and Weiss [1981] is combined with the information externality model of Lang and Nakamura [1993] to examine the properties of mortgage markets characterized by both adverse selection and information externalities. In a credit-rationing model, additional...
Persistent link: https://www.econbiz.de/10005800245
This paper takes a historical approach to understand the evolution of one of the most controversial banking regulations in recent history, the Community Reinvestment Act (CRA) of 1978 and its effects on access to credit and banking services to community borrowers. The paper lays out the...
Persistent link: https://www.econbiz.de/10005800286
This paper examines the factors that affect branch location choice of depository lenders. Consistent with previous studies, the tract level analysis in this paper finds a strong negative impact of neighborhood income and minority composition on individual access to depository branches even after...
Persistent link: https://www.econbiz.de/10009351109
Recent theoretical models and empirical analyses argue that mortgage market activity creates information and lowers the costs of underwriting mortgages. We re-examine this question using models that control for neighborhood-lender fixed effects and address the potential endogeneity of market...
Persistent link: https://www.econbiz.de/10008568682
This paper points out a design flaw in Collateralized Debt Obligation or CDO, one of the heavily traded financial instruments by investment banks. The paper suggests that financial design of CDO was not incentive compatible among the players involved in the production, marketing and investing in...
Persistent link: https://www.econbiz.de/10008473507
Loan volume creates public information. One lender’s underwriting activities generate valuable information not only for the lender itself, but also for other lenders operating in the same neighborhood. The Lang and Nakamura (L-N) model hypothesizes that the total loan volume in a...
Persistent link: https://www.econbiz.de/10005342259