Commitment and Borrower Heterogeneity: Evidence from Revolving Consumer Credit

Online Appendix Borrower protection and the supply of credit: Evidence from foreclosure laws

This online appendix is split into two sections. Section 1 provides further details on the data sources; it also presents the data on foreclosure time frames as well as the list of counties in our sample. Section 2 presents additional robustness and falsification tests.

Costly Mistakes in Credit Markets: Evidence from Consumer Loans

This paper studies how well borrowers choose their credit contracts and to what extent borrowers’ sophistication can be informative about their unobserved creditworthiness. To this end, I exploit a new source of quasi-experimental variation in interest rates, along with bunching methods. In the setting, the loan interest rate schedule features discrete jumps at specific loan amount thresholds, ...

Subprime Consumer Credit Demand: Evidence from a Lender’s Pricing Experiment

Using a unique panel data set from a U.K. credit card company, we analyze the interest rate sensitivity of subprime credit card borrowers. In addition to all individual transactions and loan terms, we have access to details of a randomized interest rate experiment conducted by the lender on existing (inframarginal) loans. For the whole sample, we estimate a statistically significant £3.4 reduct...

Banking market concentration and consumer credit constraints: Evidence from the 1983 Survey of Consumer Finances

Banking market concentration and consumer credit constraints: Evidence from the Survey of Consumer Finances

Consumer borrowing is a large and growing part of the American financial landscape, amounting to over $1.5 trillion in 2000, or 15 percent of GDP. This credit helps households improve the timing of consumption expenditure, allowing consumers to purchase goods and services when they are needed. Still, many households report being credit constrained, with requests for credit rejected or discourag...