宏观经济学workshop:寻求批准的搜寻

发布日期:2022-04-22 12:00    来源:

标题: Searching for Approval (寻求批准的搜寻)
主讲人:John Grigsby (Princeton University)

时间:4.22 上午10:30-12点

方式:线上zoom平台

https://zoom.us/j/2208162874?pwd=SitDQkJXM21IK3VucndSSzMrakE2Zz09

会议号:220 816 2874

密码:242369

摘要:
This paper studies the interaction of search and application approval in credit markets. We build a model that combines search and screening in presence of asymmetric information. Risky borrowers internalize the probability that their application is rejected, and behave as if they had high search costs. Thus “overpayment” may be a poor proxy for consumer sophistication since it partly represents rational search in response to rejections. Contrary to standard search models, our model implies 1) endogenous adverse selection through the search and application approval process, 2) a possibly non-monotone or non-decreasing relationship between search and realized interest, default, and application approval rates and 3) search costs are not identified from transaction prices alone. Using a unique dataset detailing search behavior of mortgage borrowers, we find support for the model's predictions: borrowers who search a lot pay higher interest rates than those who search a little. Estimating the model, we find that screening is informative and search is costly. Counterfactual analyses reveal that tightening lending standards and discrimination through application rejection both increase equilibrium interest rates. Overall, we establish a tight link between application rejection and realized interest rates in equilibrium.

主讲人简介:

John Grigsby is an Assistant Professor of Economics at Princeton University. His research studies macroeconomics with a focus on aggregate labor markets, wage dynamics and innovation. His work has been published in top journals such as the American Economic Review, the Quarterly Journal of Economics, the Review of Financial Studies, and many more. His research has received wide media coverage, and his working paper “Searching for Approval” is currently under revise and resubmit with Econometrica.

 


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