Group Lending with Adverse Selection
观点 · 2004-07-06 00:00
返回Abstract We focus on adverse selection as a foundation of group lending. In a simple static model we show that there is no collateral eect if borrowers do not know each other. If the borrowers know each ...
Abstract
We focus on adverse selection as a foundation of group lending. In a simple static model we show that there is no collateral eect if borrowers do not know each other. If the borrowers know each other, group lending implements e cient lending. However, it is not robust to collusive behavior, when transfers are allowed between colluding partners. Finally, we characterize the optimal collusion-proof group contract.
