The DOI matches its Crossref record; 12 of the 12 references it cites were found in a registry or an index.
Collateral and Rationing: Sorting Equilibria in Monopolistic and Competitive Credit Markets
Abstract
The authors examine how market structure affects credit allocation under universal risk neutrality and asymmetric information about borrowers. They consider both monopolistic and perf ectly-competitive banks and examine the role of collateral in each ca se. When a bank is a monopolist on the loan side, they find collatera l is never used and asymmetric information results in reduced bank le nding. Under perfect competition, collateral has a useful sorting rol e. Moreover, rationing is possible even with collateral availability and perfectly-elastic deposit supply. In this setting, the authors sh ow co-signers are valuable. Social welfare properties of the monopoly and competitive equilibria are also compared. Copyright 1987 by Economics Department of the University of Pennsylvania and the Osaka University Institute of Social and Economic Research Association.
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Citations
Cites
Credit Rationing in Markets with Imperfect Information
Stiglitz, J. E., & Weiss, A. (1981) · Columbia University · doi:10.7916/d8v12ft1 · Cited by 12,769
Equilibrium in Competitive Insurance Markets: An Essay on the Economics of Imperfect Information
Rothschild, M., & Stiglitz, J. (1976) · The Quarterly Journal of Economics · doi:10.2307/1885326 · Cited by 4,987
(1985) · American Economic Review · Cited by 1,432
Imperfect Information, Uncertainty, and Credit Rationing
Jaffee, D. M., & Russell, T. (1976) · The Quarterly Journal of Economics · doi:10.2307/1885327 · Cited by 1,411
A model of insurance markets with incomplete information
Wilson, C. (1977) · Journal of Economic Theory · doi:10.1016/0022-0531(77)90004-7 · Cited by 1,035
Incentive Effects of Terminations: Applications to the Credit and Labor Markets
Stiglitz, J. E., & Weiss, A. (1983) · Columbia University · doi:10.7916/d80k2kjv · Cited by 549
Asymmetric Valuations and the Role of Collateral in Loan Agreements
Chan, Y.-S., & Kanatas, G. (1985) · Journal of Money, Credit and Banking · doi:10.2307/1992508 · Cited by 473
A Theory and Test of Credit Rationing
Jaffee, D. M., & Modigliani, F. (1969) · American Economic Review · Cited by 382
CREDIT RATIONING AND THE COMMERCIAL‐LOAN MARKET*
Jaffee, D. M. (1969) · The Journal of Finance · doi:10.1111/j.1540-6261.1969.tb00401.x · Cited by 142
The Horizontal Integration of the Banking Firm, Credit Rationing and Monetary Policy
Alex Cukierman, A. (1978) · The Review of Economic Studies · doi:10.2307/2297092 · Cited by 22
Cited by
N. Berger, A., & F. Udell, G. (1998) · Journal of Banking & Finance · doi:10.1016/s0378-4266(98)00038-7 · Cited by 3,690
“…pledging outside collateral may help resolve adverse selection problems when the borrower has more information about the quality of the investment than the lender, and may help prevent credit rationing (Stiglitz and Weiss 1981, 1986, Bester 1985, Chan and Kanatas 1985, Besanko and Thakor 1987a,b).”
FinTech and banking: What do we know?
Thakor, A. V. (2020) · Journal of Financial Intermediation · doi:10.1016/j.jfi.2019.100833 · Cited by 1,378
Self-citationCovenants and collateral as incentives to monitor
RAJAN, R., & WINTON, A. (1995) · The Journal of Finance · doi:10.1111/j.1540-6261.1995.tb04052.x · Cited by 1,193
Moral hazard and secured lending in an infinitely repeated credit market game
Boot, A. W. A., & Thakor, A. V. (1994) · International Economic Review · doi:10.2307/2527003 · Cited by 827
Self-citationIs relationship lending special? Evidence from credit-file data in Germany
Elsas, R., & Krahnen, J. P. (1998) · Journal of Banking & Finance · doi:10.1016/s0378-4266(98)00063-6 · Cited by 709
Metadata
- Authors
- Besanko, D., & Thakor, A. V.
- Venue
- International Economic Review
- Publisher
- JSTOR
- Published
- 1987-10
- Volume
- 28
- Issue
- 3
- Pages
- 671
- ISSN
- 0020-6598 (ISSN-L)
- OpenAlex
- W2044464163
- Cited by
- 964
- References
- 12
- FWCI
- 18.54
- Type
- journal article
- Language
- en
- Open access
- closed
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Contains information from the Semantic Scholar Academic Graph Datasets, made available under the ODC Attribution License (ODC-BY 1.0).
Semantic Scholar’s data is described in: Kinney, R., et al. (2023). The Semantic Scholar Open Data Platform. arXiv:2301.10140.
