Clinic, Rochester, MN, United States Science depends upon visual communication. This typically ncludes graphs, charts, slides, and other visual depictions of data nd scientific concepts. More recently, and especially in other areas f science and medicine, communication by the use of images has ecome both necessary and appropriate. It is with the visual image, s opposed to the purely textual or ...

This paper demonstrates how the behavior of credit markets in a transition-like environment can be a function of the market structure in the commercial lending sector that was inherited from the pre-reform economy. Using a game theoretic model, we investigate one possible explanation for how a more crowded banking sector can diminish the scale of commercial lending in a market in which informat...

Abstract Adverse market events can affect credit supply not only by hurting financial fundamentals but also changing the risk-taking behaviors of individual decision-makers. We provide micro-level evidence this decision-making channel in U.S. mortgage market. find that application rejection rates are more sensitive to foreclosure intensity when loan officers exposed news, despite same housing a...

We analyze the transmission effects of monetary policy in a general equilibrium model of the financial sector, with bank lending and securities markets. Bank lending is constrained by capital adequacy requirements, and asymmetric information adds a cost to outside bank equity capital. In our model, monetary policy does not affect bank lending through changes in bank liquidity; rather, it operat...

Recently, P2P lending has become a hot research topic in finance, especially after the global financial crisis. Most existing research did not consider the efficiency from the borrowers’ perspective. This paper proposes a decision support system based on intelligent agents in P2P Lending for borrowers. The system provides borrowers with individual risk assessment, eligible lender search, lendin...

We use a model of mean-shifting investment technologies to study the relationship between market structure, risk taking and social welfare in lending markets. Introduction of loan market competition is shown to reduce lending rates and to generate higher investments without increasing the equilibrium bankruptcy risk of borrowers. Hence, there need not be a tradeo€ between lending market competi...

This paper studies the impact of geographic banking deregulation on the effectiveness of monetary policy. State-level removal of restrictions on interstate banking strengthened the effect of monetary policy on bank lending. This effect was driven by small banks affiliated with bank holding companies. Following interstate deregulation affiliated banks reallocate assets towards securities and awa...

In this paper we re–examine banks’ lending behavior taking into account changes in the stance of monetary policy in conjunction with changes in financial sector uncertainty. Using a very large data set covering all banks in the US between 1979–2000, we show that financial sector uncertainty plays an important role in banks’ lending decisions: for a given size classification, less liquid banks (...

Lending rates are more likely to experience big jumps rather than big drops. I compare this asymmetry across countries. First, I document that lending rates are more asymmetric in economies with poor financial systems. Second, I explain this finding by introducing agency costs into a model with endogenous flow of information about the aggregate state of the economy. High monitoring costs magnif...