Informal Credit Markets, Common-Pool Resources and Education

Information and Enforcement in Informal Credit Markets

We study the problem of loan enforcement in an informal credit market with limited information flow. Specifically, credit histories of borrowers are not available, raising the possibility of endemic default. We show that if there is some minimum proportion of “natural defaulters” in the population, then there exists an equilibrium characterized by certain simple behavior rules for lenders and b...

Sustainability of common pool resources

Sustainability has become a key issue in managing natural resources together with growing concerns for capitalism, environmental and resource problems. We hypothesize that the ongoing modernization of competitive societies, which we refer to as "capitalism," affects human nature for utilizing common pool resources, thus compromising sustainability. To test this hypothesis, we design and impleme...

Informal Credit Markets and Economic Development in Taiwan

Farmers’ Choice and Informal Credit Markets in China

Common factors in credit defaults swaps markets

We examine what are common factors that determine systematic credit risk and estimate and interpret the common risk factors. We also compare the contributions of common factors in explaining the changes of credit default swap (CDS) spreads during the pre-crisis, crisis and post-crisis period. Based on the testing result from the common principal components model, this study finds that the eigen...