Roman Inderst
- 24 September 2015
- WORKING PAPER SERIES - No. 1852Details
- 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. 1439Details
- 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. 1296Details
- 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