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Replication data for: Liquidity Constraints and Imperfect Information in Subprime Lending

Version
1
Resource Type
Dataset
Creator
  • Adams, William
  • Einav, Liran
  • Levin, Jonathan
Publication Date
2009-03-01
Description
  • Abstract

    We present new evidence on consumer liquidity constraints and the credit market conditions that might give rise to them. We analyze unique data from a large auto sales company serving the subprime market. Short-term liquidity appears to be a key driver of consumer behavior. Demand increases sharply during tax rebate season and purchases are highly sensitive to down-payment requirements. Lenders also face substantial informational problems. Default rates rise significantly with loan size, providing a rationale for loan caps, and higher-risk borrowers demand larger loans. This adverse selection is mitigated, however, by risk-based pricing. (JEL D14, D82, D83, G21)
Availability
Download
Relations
  • Is supplement to
    DOI: 10.1257/aer.99.1.49 (Text)
Publications
  • Adams, William, Liran Einav, and Jonathan Levin. “Liquidity Constraints and Imperfect Information in Subprime Lending.” American Economic Review 99, no. 1 (February 2009): 49–84. https://doi.org/10.1257/aer.99.1.49.
    • ID: 10.1257/aer.99.1.49 (DOI)

Update Metadata: 2020-05-18 | Issue Number: 2 | Registration Date: 2019-12-07

Adams, William; Einav, Liran; Levin, Jonathan (2009): Replication data for: Liquidity Constraints and Imperfect Information in Subprime Lending. Version: 1. ICPSR - Interuniversity Consortium for Political and Social Research. Dataset. https://doi.org/10.3886/E116303V1