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作者：Dettling, Lisa J.; Hsu, Joanne W.
作者单位：Federal Reserve System - USA; Federal Reserve System Board of Governors; Howard University
摘要：This paper examines how minimum wages affect lender and borrower interactions with consumer credit markets. We find that higher state minimum wages increase the supply of unsecured credit, reduce payday loan usage, decrease delinquency, and increase credit scores. Overall, minimum wages reduce borrowing costs and have positive spillover effects on disposable income and liquidity. A back-of-the-envelope of the cost savings indicates that higher minimum wages increase disposable income by 1.3% m...
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作者：Franks, Julian; Serrano-Velarde, Nicolas; Sussman, Oren
作者单位：University of London; London Business School; Bocconi University; Bocconi University; University of Oxford
摘要：Lending marketplaces aimed at directly connecting retail lenders and borrowers retreat from auctions and, instead, set prices and allocate credit on their own, despite evidence that retail investors possess valuable soft and nonstandard information. We investigate this puzzle by analyzing a unique data set of 7,455 auctions and 34 million bids from a leading British peer-to-business platform. We find that the platform was vulnerable to liquidity shocks, resulting in sizable deviations from inf...
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作者：Medina, Paolina C.
作者单位：Texas A&M University System; Texas A&M University College Station
摘要：This paper studies the direct and indirect effects of nudging, by means of a field experiment with a financial management platform in Brazil. Reminders for upcoming credit card payments reduced credit card late-payment fees by 14%, but increased overdraft fees in checking accounts by 9%. The unintended effect is concentrated in users with a history of overdraft use. These users experienced a net increase of 5% in total fees, while the rest experienced savings of 15%. The results provide clear ...
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作者：Ben-David, Itzhak; Bos, Marieke
作者单位：University System of Ohio; Ohio State University; National Bureau of Economic Research; Stockholm School of Economics; Swedish House of Finance
摘要：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 c...
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作者：Darmouni, Olivier; Sutherland, Andrew
作者单位：Columbia University; Massachusetts Institute of Technology (MIT)
摘要：We study how small and medium enterprise (SME) lenders react to information about their competitors' contracting decisions. To isolate this learning from lenders' common reactions to unobserved shocks to fundamentals, we exploit the staggered entry of lenders into an information-sharing platform. Upon entering, lenders adjust their contract terms toward what others offer. This reaction is mediated by the distribution of market shares: lenders with higher shares or that operate in concentrated ...
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作者：Huang, Shiyang; Mao, Yifei; Wang, Cong (Roman); Zhou, Dexin
作者单位：University of Hong Kong; Cornell University; Texas Tech University System; Texas Tech University; City University of New York (CUNY) System; Baruch College (CUNY)
摘要：We investigate the effect of pre-IPO investments by public market institutional investors (institutions) on the exit of venture capitalists (VCs). Results indicate that institutions' pre-IPO investments reduce IPO underpricing by mitigating VCs' reliance on all-star analysts to boost market liquidity. We conclude that institutions facilitate VC exits in the secondary market. Supporting this view, our analysis reveals that the presence of institutions allows VCs to exit with a reduced price imp...
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作者：Albert, Christoph; Caggese, Andrea
作者单位：Pompeu Fabra University; Barcelona School of Economics; Centre de Recerca en Economia Internacional (CREI)
摘要：We analyze a multiyear, multicountry entrepreneurship survey with more than one million observations to identify startups with low and high growth potential. We confirm the validity of these ex ante measures with ex post firm-level information on employment growth. We find that negative aggregate financial shocks reduce all startup types, but their effect is significantly stronger for startups with high growth potential, especially when GDP growth is low. Our results uncover a new composition ...
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作者：Gete, Pedro; Reher, Michael
作者单位：IE University; University of California System; University of California San Diego
摘要：We show how securitization affects the size of the nonbank lending sector through a novel price-based channel. We identify the channel using a regulatory spillover shock to the cross-section of mortgage-backed security prices: the U.S. liquidity coverage ratio. The shock increases secondary market prices for FHA-insured loans by granting them favorable regulatory status once securitized. Higher prices lower nonbanks' funding costs, prompting them to loosen lending standards and originate more ...
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作者：Chernenko, Sergey; Lerner, Josh; Zeng, Yao
作者单位：Purdue University System; Purdue University; Harvard University; National Bureau of Economic Research; University of Pennsylvania
摘要：Founder-friendly venture financings and nontraditional venture investors have both flourished over the past decade. Using detailed contract data, we study open-end mutual funds investing in private venture-backed firms. We posit that conflicts between early-stage venture investors and liquidity-constrained later-stage ones influence the classic agency problems affecting entrepreneurs and investors. We find that mutual funds with more stable funding are more likely to invest in private firms an...
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作者：Braggion, Fabio; Dwarkasing, Mintra; Ongena, Steven
作者单位：Tilburg University; Erasmus University Rotterdam; Erasmus University Rotterdam - Excl Erasmus MC; University of Zurich; Swiss Finance Institute (SFI); KU Leuven; Center for Economic & Policy Research (CEPR)
摘要：Economic theories posit conflicting hypotheses on how wealth inequality affects entrepreneurial dynamism. We investigate the impact of wealth inequality on business dynamics by constructing local measures of household wealth inequality based on financial rents, home equity, and 1880 farmland. We then identify the effect of wealth inequality on entrepreneurship by instrumenting it with land distribution under the 1862 Homestead Act. Wealth inequality decreases firm entry and exit, and the propo...
