Related papers: Financial knowledge and borrower discouragement
Online crowdfunding has received a great deal of attention from entrepreneurs and policymakers as a promising avenue to fostering entrepreneurship and innovation. A notable aspect of this shift from an offline to an online setting is that…
Over the last couple of decades in the lending industry, financial disintermediation has occurred on a global scale. Traditionally, even for small supply of funds, banks would act as the conduit between the funds and the borrowers. It has…
We develop a deep learning model of multi-period mortgage risk and use it to analyze an unprecedented dataset of origination and monthly performance records for over 120 million mortgages originated across the US between 1995 and 2014. Our…
One of the major problems confronting financial institutions most especially microfinance institutions is the increasing incidence of loan defaults and consequence loan losses which manifested in their financial performance with huge…
Most companies' new business practices are based on customer data. These practices have raised privacy concerns because of the associated risks. Privacy laws require companies to gain customer consent before using their information, which…
We present a graph-theoretic model of consumer choice, where final decisions are shown to be influenced by information and knowledge, in the form of individual awareness, discriminating ability, and perception of market structure. Building…
Knowledge is considered an essential resource for organizations. For organizations to benefit from their possessed knowledge, knowledge needs to be managed effectively. Despite knowledge sharing and management being viewed as important by…
Access to capital is a major constraint for economic growth in the developing world. Yet those attempting to lend in this space face high defaults due to their inability to distinguish creditworthy borrowers from the rest. In this paper, we…
Deep learning adoption in the financial services industry has been limited due to a lack of model interpretability. However, several techniques have been proposed to explain predictions made by a neural network. We provide an initial…
Modern universities may play a significant role in entrepreneurial ecosystems by boosting the entrepreneurial activity of the region. One way to achieve this is through entrepreneurship education. In this study we suggest that one reason…
As financial institutions increasingly rely on machine learning models to automate lending decisions, concerns about algorithmic fairness have risen. This paper explores the tradeoff between enforcing fairness constraints (such as…
The existence of asymmetric information has always been a major concern for financial institutions. Financial intermediaries such as commercial banks need to study the quality of potential borrowers in order to make their decision on…
We evaluate adversarial robustness in tabular machine learning models used in financial decision making. Using credit scoring and fraud detection data, we apply gradient based attacks and measure impacts on discrimination, calibration, and…
This paper examines competitive information disclosure in search markets with a mix of savvy consumers, who search costlessly, and inexperienced consumers, who face positive search costs. Savvy consumers incentivize truthful disclosure;…
We test how individuals with incorrect beliefs about their ability learn about an external parameter (`fundamental') when they cannot separately identify the effects of their ability, actions, and the parameter on their output. Heidhues et…
I study a model of advisors with hidden motives: a seller discloses information about an object's value to a potential buyer, who doesn't know the object's value or how profitable the object's sale is to the seller (the seller's motives). I…
We develop an experimentally validated, short and easy-to-use survey module for measuring individual debt aversion. To this end, we first estimate debt aversion on an individual level, using choice data from Meissner and Albrecht (2022).…
We study a simple, solvable model that allows us to investigate effects of credit contagion on the default probability of individual firms, in both portfolios of firms and on an economy wide scale. While the effect of interactions may be…
This paper discusses serious drawbacks of existing knowledge in macroeconomics and finance in explaining and predicting economic and financial phenomena. Complexity science is proposed as an alternative approach to be used in order to…
Based on the Global Entrepreneurship Monitor (GEM) surveys and conducting a panel data estimation to test our hypothesis, this paper examines whether corruption perceptions might sand or grease the wheels for entrepreneurship inside…