Search Results

Showing results 1 to 1 of approximately 1.

(refine search)
SORT BY: PREVIOUS / NEXT
Keywords:unsecured credit 

Working Paper
Modeling the Revolving Revolution: The Debt Collection Channel

We investigate the role of information technology (IT) in the collection of delinquent consumer debt. We argue that the widespread adoption of IT by the debt collection industry in the 1990s contributed to the observed expansion of unsecured risky lending such as credit cards. Our model stresses the importance of delinquency and private information about borrower solvency. The prevalence of delinquency implies that the costs of debt collection must be borne by lenders to sustain incentives to repay debt. IT mitigates informational asymmetries, allowing lenders to concentrate collection ...
Working Papers , Paper 17-2

FILTER BY Series

FILTER BY Content Type

FILTER BY Author

FILTER BY Jel Classification

D91 1 items

E21 1 items

G20 1 items

FILTER BY Keywords

PREVIOUS / NEXT