Screening on Loan Terms: Evidence from Maturity Choice in Consumer Credit

We exploit a natural experiment in the largest online consumer lending platform to provide the first evidence that loan terms, in particular maturity choice, can be used to screen borrowers based on their private information. We compare two groups of observationally equivalent borrowers who took ide...

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Bibliographic Details
Published in:The Review of financial studies 2018-09, Vol.31 (9), p.3532-3567
Main Authors: Hertzberg, Andrew, Liberman, Andres, Paravisini, Daniel
Format: Article
Language:English
Subjects:
2012-2015
Consumer credit
Electronic publishing
Internet
Loans
Maturity
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