| 1. |
- Agarwal, Sumit, et al.
(författare)
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Rationality in the consumer credit market
- 2019
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Ingår i: Handbook of US Consumer Economics. - : Academic Press. - 9780128135242 ; , s. 121-139
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Bokkapitel (övrigt vetenskapligt/konstnärligt)abstract
- A significant share of the population continues to rely on alternative financial services (AFS) outside the mainstream banking system to satisfy their credit needs. For instance, the most recent FDIC national survey (2017) shows that one-quarter of US households have used AFS in the last year. Skiba and Tobacman (2009) document that payday lenders have more storefronts in the United States than McDonald’s and Starbucks combined and pawnbrokers continue to serve the financial needs of low-income families as they have done for centuries (Bos et al. (2012). Academics and policymakers are concerned about the use of AFS products, as they charge very high fees, have very high interest rates, and are susceptible to deceptive and predatory lending practices (Bhutta et al. (2015); Campbell et al. (2011); Morse (2011); Melzer (2011); Bhutta et al. (2015)). In this chapter we study the choice between uncollateralized mainstream credit (credit cards, credit lines, and installment loans) and alternative credit (pawn loans). Our objective is to test the conjecture that alternative credit markets are exploiting creditworthy borrowers by charging them high fees and interest rates. We have a very simple thought experiment in mind that will allow us to test the above conjecture. If we can back out the true underwriting model for a bank that issues uncollateralized mainstream credit and then test whether a borrower who generally takes out alternative credit can be approved for mainstream credit using this underwriting model, it would provide empirical proof for the statements made by academics and policymakers that consumers are making irrational decisions by taking out expensive loans. Alternatively, if borrowers using alternative credit cannot be approved for these mainstream loans, then it would appear that they are making a rational choice to access alternative credit despite the higher cost.
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| 2. |
- Bach, Laurent, et al.
(författare)
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How Do Acquisitions Affect the Mental Health of Employees?
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Annan publikation (övrigt vetenskapligt/konstnärligt)abstract
- Using employer-employee level data linked to individual health records, we document that the incidence of stress, anxiety, depression, psychiatric medication usage, and even suicide increase following acquisitions. These effects are prevalent among employees from both targets and acquirers, in weak as well as in growing, profitable firms. Employees who experience negative career developments within the merging firms, ’blue-collar’ workers, and employees with lower cognitive and non-cognitive skills are most affected. A variety of tests address endogeneity concerns, including an analysis exploiting failed mergers. Our findings point to mental illness as a significant non-pecuniary cost of acquisitions.
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| 3. |
- Beauchaine, Theodore P., et al.
(författare)
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ADHD, financial distress, and suicide in adulthood: A population study
- 2020
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Ingår i: Science Advances. - : American Association for the Advancement of Science: Science Advances / AAAS. - 2375-2548. ; 6:40
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Tidskriftsartikel (refereegranskat)abstract
- Attention-deficit/hyperactivity disorder (ADHD) exerts lifelong impairment, including difficulty sustaining employment, poor credit, and suicide risk. To date, however, studies have assessed selected samples, often via self-report. Using mental health data from the entire Swedish population (N = 11.55 million) and a random sample of credit data (N = 189,267), we provide the first study of objective financial outcomes among adults with ADHD, including associations with suicide. Controlling for psychiatric comorbidities, substance use, education, and income, those with ADHD start adulthood with normal credit demand and default rates. However, in middle age, their default rates grow exponentially, yielding poor credit scores and diminished credit access despite high demand. Sympathomimetic prescriptions are unassociated with improved financial behaviors. Last, financial distress is associated with fourfold higher risk of suicide among those with ADHD. For men but not women with ADHD who suicide, outstanding debt increases in the 3 years prior. No such pattern exists for others who suicide.
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| 4. |
- Becker, Bo, et al.
(författare)
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Bad Times, Good Credit
- 2020
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Ingår i: Journal of Money, Credit and Banking. - : Wiley. - 0022-2879 .- 1538-4616. ; 52, s. 107-142
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Tidskriftsartikel (refereegranskat)abstract
- Banks' limited knowledge about borrowers' creditworthiness constitutes an important friction in credit markets. Is this friction deeper in recessions, thereby contributing to cyclical swings in credit, or is the friction reduced, as bad times reveal information about firm quality? We test these alternative hypotheses using internal ratings data from a large Swedish cross-border bank and credit scores from a credit bureau. The ability to classify corporate borrowers by credit quality is greater during bad times and worse during good times. Soft and hard information measures both display countercyclical patterns. Our results suggest that information frictions in corporate credit markets are intrinsically countercyclical and not due to cyclical variation in monitoring effort. The presence of countercyclical information frictions provides a rationale for countercyclical provisions or capital in banks to smooth credit cycles.
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| 5. |
- Becker, Bo, et al.
(författare)
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Bad Times, Good Credit
- 2015
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Ingår i: SSRN Electronic Journal. - Stockholm, Sweden : Swedish House of Finance (SHOF). - 1556-5068.
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Annan publikation (övrigt vetenskapligt/konstnärligt)abstract
- Banks’ limited knowledge about borrowers’ creditworthiness constitutes an important friction in credit markets. Is this friction deeper in recessions, thereby contributing to cyclical swings in credit, or is the depth of the friction reduced, as bad times reveal information about firm quality? We test these alternative hypotheses using internal ratings data from a large Swedish cross-border bank and credit scores from a credit bureau. The ability to classify corporate borrowers by credit quality is greater during bad times and worse during good times Soft and hard information measures both display countercyclical patterns. Our results suggest that information frictions in corporate credit markets are intrinsically counter-cyclical and not due to cyclical variation in monitoring effort.
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| 6. |
- Becker, Bo, et al.
(författare)
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Konjunkturrådets rapport 2015 - Den svenska skulden
- 2015. - 1st
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Rapport (övrigt vetenskapligt/konstnärligt)abstract
- De svenska hushållens skulder utgör inget akut hot mot den finansiella stabiliteten. Men åtgärder krävs för att göra systemet mer robust mot störningar och få lånemarknaderna att fungera bättre för hushåll och företag. Det är de övergripande slutsatserna i SNS Konjunkturrådsrapport 2015 "Den svenska skulden".
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| 7. |
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| 8. |
- Ben-David, Itzhak, et al.
(författare)
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Impulsive Consumption and Financial Well-Being: Evidence from an Increase in the Availability of Alcohol
- 2021
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Ingår i: Review of Financial Studies. - : Oxford University Press (OUP): Policy F - Oxford Open Option D. - 0893-9454 .- 1465-7368. ; 34:5, s. 2608-2647
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Tidskriftsartikel (refereegranskat)abstract
- The increased availability of alcohol may harm individuals who have present-focused preferences and consume more than initially planned. Using a nationwide experiment in Sweden, we study the credit behavior of low-income households around the expansion of liquor stores' operating hours on Saturdays. Consistent with store closures serving as commitment devices, the policy led to higher credit demand, more default, increased dependence on welfare, and higher crime on Saturdays. The effects are concentrated on the young population due to higher alcohol consumption combined with tight liquidity constraints. The policy's impact on indebtedness is estimated at 4.5 times the expenditure on alcohol. © 2020 The Author(s) 2020. Published by Oxford University Press on behalf of The Society for Financial Studies.
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| 9. |
- Ben-David, Itzhak, et al.
(författare)
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Impulsive Consumption and Financial Wellbeing: Evidence from an Increase in the Availability of Alcohol
- 2017
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Annan publikation (övrigt vetenskapligt/konstnärligt)abstract
- Increased availability of alcohol may harm individuals if they have present-focused preferences and consume more than initially planned. Using a nationwide experiment in Sweden, we study the credit behavior of low-income households around the expansion of liquor stores' operating hours on Saturdays. Consistent with store closures serving as commitment devices, the policy led to higher credit demand, more default, increased dependence on welfare, and higher crime on Saturdays. The effects are concentrated among the young population due to higher alcohol consumption combined with tight liquidity constraints. The policy's impact on indebtedness is estimated at 4.5 times the expenditure on alcohol.
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| 10. |
- Bos, Marieke
(författare)
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Accept or Reject : Do Immigrants Have Less Access to Bank Credit? Evidence from Swedish Pawnshop Customers
- 2012
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Rapport (övrigt vetenskapligt/konstnärligt)abstract
- This paper studies to what extent immigrants have less access to mainstream credit than their native counterparts. For this purpose I use a large, unique data set with a panel of Swedish pawnshop customers. The data allow me to investigate to what extent pawnshop customers actively apply for mainstream bank credit and how successful they are by comparing credit applications from immigrants and natives and the corresponding bank decisions.I do not find that immigrants have a different propensity to apply for mainstream bank credit. However, I do find that banks have a lower propensity to grant loans to immigrants from African descent compared to their Nordic-born counterparts. Robustness tests based on data from recent immigrants only suggest that the demand for credit varies with the duration of residence while differences in loan-granting rates are enduring.
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