China's Loan Negotiations

From Loan Screening to Loan Prospecting

We study a controlled corporate experiment in which loan officers were compensated to engage in loan prospecting in addition to the traditional loan screening. Loan prospecting led to larger loan sizes (+15%) and higher origination rates (+31%) while keeping the traditional credit quality threshold and interest rate intact. Loan officers attempt to influence the decision making process: loan of...

Chinas provincial disparities and the determinants of provincial inequality

The paper explains the growth –inequality nexus for China’s provinces. The theoretical model of provincial development consists of two regions and studies the interactions of a mutual depending development process. Due to positive externalities, incoming trade and FDI induce imitation and hence productivity growth. The regional government can in‡uence the economy by changing international trans...

Feminist Negotiations

Loan Rate Setting

We propose a heteroscedastic regression model to identify the determinants of the dispersion in interest rates on loans granted to small and medium sized enterprises. We interpret unexplained deviations as evidence of the banks’ discretionary use of market power in the loan rate setting process. “Discretion” in the loan-pricing process is most important, we find, if: (i) loans are small and unc...

Consumer Negotiations

Wanting to relate their interest in the corporation's internal economic activities to the social world beyond the firm, business historians may find the study of consumption a valuable area of research. In Consumption and the l•orld of Goods, John Brewer and Roy Porter make this point that no matter how "entrenched" the field of economic history and how vast the scope of social and cultural his...