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Roman Inderst

24 September 2015
WORKING PAPER SERIES - No. 1852
Details
Abstract
Savings accounts are owned by most households, but little is known about the performance of households
JEL Code
D12 : Microeconomics→Household Behavior and Family Economics→Consumer Economics: Empirical Analysis
E21 : Macroeconomics and Monetary Economics→Consumption, Saving, Production, Investment, Labor Markets, and Informal Economy→Consumption, Saving, Wealth
G11 : Financial Economics→General Financial Markets→Portfolio Choice, Investment Decisions
G21 : Financial Economics→Financial Institutions and Services→Banks, Depository Institutions, Micro Finance Institutions, Mortgages
Network
Household Finance and Consumption Network (HFCN)
30 May 2012
WORKING PAPER SERIES - No. 1439
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Abstract
We offer a theoretical framework to analyze corporate lending when loan officers must be incentivized to prospect for loans and to transmit the soft information they obtain in that process. We explore how this multi-task agency problem shapes loan officers' compensation, banks' use of soft information in credit approval, and their lending standards. When competition intensifies, prospecting for loans becomes more important and banks' internal agency problem worsens. In response to more competition, banks lower lending standards, may choose to disregard soft and use only hard information in their credit approval, and in that case reduce loan officers to salespeople with steep, volume-based compensation. Our model generates "excessive lending" as banks' optimal response to an internal agency problem.
JEL Code
D82 : Microeconomics→Information, Knowledge, and Uncertainty→Asymmetric and Private Information, Mechanism Design
G21 : Financial Economics→Financial Institutions and Services→Banks, Depository Institutions, Micro Finance Institutions, Mortgages
L13 : Industrial Organization→Market Structure, Firm Strategy, and Market Performance→Oligopoly and Other Imperfect Markets
28 February 2011
WORKING PAPER SERIES - No. 1296
Details
Abstract
We introduce professional financial advice in households
JEL Code
E1 : Macroeconomics and Monetary Economics→General Aggregative Models
G2 : Financial Economics→Financial Institutions and Services
D8 : Microeconomics→Information, Knowledge, and Uncertainty
Network
Conference on household finance and consumption