Related papers: Financial knowledge and borrower discouragement
A central challenge in financial economics is understanding how credit networks form under informational noise. We introduce the concept of topological capital, arguing that banks increasingly rely on topological certification, interpreting…
The upsurge of real estate involves a variety of factors that have got influenced by many domains. Indeed, the unrecognized sector that would affect the economy for which regulatory proposals are being drafted to keep this in control is the…
Crowdfunding has emerged as a prominent way for entrepreneurs to secure funding without sophisticated intermediation. In crowdfunding, an entrepreneur often has to decide how to disclose the campaign status in order to collect as many…
The paper presents findings from a comprehensive study examining the saving and credit behaviors of low-income households residing in unauthorized colonies within a metropolitan area. Utilizing a dual approach, the study engaged in…
In credence goods markets such as health care or repair services, consumers rely on experts with superior information to adequately diagnose and treat them. Experts, however, are constrained in their diagnostic abilities, which hurts market…
When a new product or technology is introduced, potential consumers can learn its quality by trying the product, at a risk, or by letting others try it and free-riding on the information that they generate. We propose a dynamic game to…
When agents' information is imperfect and dispersed, existing measures of macroeconomic uncertainty based on the forecast error variance have two distinct drivers: the variance of the economic shock and the variance of the information…
Context and Motivation: Software requirements are affected by the knowledge and confidence of software engineers. Analyzing the interrelated impact of these factors is difficult because of the challenges of assessing knowledge and…
Statisticians and data scientists find insights that help lead to better understanding and better outcomes. When clients and managers come to us for help (and even when they don't), we want to share our advice. While we should be free to…
The instability of the financial system as experienced in recent years and in previous periods is often linked to credit defaults, i.e., to the failure of obligors to make promised payments. Given the large number of credit contracts, this…
The irrational behavior of investors selling profitable assets too early while holding onto losing assets for too long is known as the disposition effect. Due to the development of the Internet, the information environment for individual…
This study investigates the impact of female leadership on the financial constraints of firms, which are publicly listed entrepreneurial enterprises in China. Utilizing data from 938 companies on the China Growth Enterprise Market (GEM)…
This paper provides an alternative approach to Duffie and Lando [Econometrica 69 (2001) 633-664] for obtaining a reduced form credit risk model from a structural model. Duffie and Lando obtain a reduced form model by constructing an economy…
The rise of social media financial influencers (finfluencers) has significantly transformed the personal finance landscape, making financial advice and insights more accessible to a broader and younger audience. By leveraging digital…
We conduct a field experiment on a movie-recommendation platform to investigate whether and how online recommendations influence consumption choices. Using a within-subjects design, our experiment measures the causal effect of…
This paper focuses on the expected difference in borrower's repayment when there is a change in the lender's credit decisions. Classical estimators overlook the confounding effects and hence the estimation error can be magnificent. As such,…
Phishing is a major cyber threat to organizations that can cause financial and reputational damage, threatening their existence. The technical measures against phishing should be complemented by awareness training for employees. However,…
We present a financial market model, characterized by self-organized criticality, that is able to generate endogenously a realistic price dynamics and to reproduce well-known stylized facts. We consider a community of heterogeneous traders,…
How does an entrepreneur's social capital improve small informal business productivity? Although studies have investigated this relationship, we still know little about the underlying theoretical mechanisms driving these findings. Using a…
The international financial system is currently not yet prepared to face a foreseeable crisis mainly motivated by the dichotomy between the real economy and the virtual economy. Skepticism is widespread even when it comes to investments in…