Do Local Capital Market Conditions Affect Consumers' Borrowing Decisions?

• 成果类型: Article
• 署名作者: Butler, Alexander W.; Cornaggia, Jess; Gurun, Umit G.
• 署名单位: Rice University; Pennsylvania Commonwealth System of Higher Education (PCSHE); Pennsylvania State University; Pennsylvania State University - University Park; University of Texas System; University of Texas Dallas
• 刊物名称: MANAGEMENT SCIENCE
• ISSN/ISSBN: 0025-1909
• DOI: 10.1287/mnsc.2016.2560
• 发表日期: 2017
• 页码: 4175-4187
• 关键词: Household finance; Local; banking; Peer-to-peer lending

摘要

This paper uses detailed data from an online peer-to-peer lending intermediary to test whether local access to finance affects consumers' willingness to pay for loans. After controlling for local economic conditions and borrower credit quality, we find that borrowers who reside in areas with good access to bank finance request loans with lower interest rates. This effect is stronger for borrowers with poor credit and those seeking small loans, suggesting that local access to finance is more important for marginal borrowers. Overall, our findings shed light on how consumers substitute between alternative sources of finance.