This study tries to identify the accuracy of individual investors’ capability predict a borrower’s creditworthiness in peer-to-peer lending markets and examine whether their ability is likely evolve over time. The results this show that there no significant difference between predictive power ex-ante funding decision model ex-post repayment performance. Furthermore, performance shown improve It...

Using individual credit bureau data matched with cash windfalls from fracking, we estimate that windfall recipients reduce debt-to-income by 2.4 percentage points relative to no-windfall controls. Debt repayment effects are 3 times stronger for subprime individuals than prime individuals. Based on the timing of upfront versus continuing payments, debt coincides payments but not news about futur...

Dynamic incentives granted to the micro entrepreneurs for good loan repayment increase their business growth. The purpose of this research is examine relationships between dynamic and microentrepreneurial performance in Malaysia. questionnaire obtained cross-sectional data from 450 micro-entrepreneurs who are part micro-financing scheme. micro-entrepreneur firm were constructed as a reflective ...

B usiness failure typically occurs when a financially weak firm can no longer pay its creditors. Failure generally involves a series of steps. First, the firm suffers losses. Second, when the firm’s creditors learn of the losses, they increase their estimate of the firm’s probability of default. To compensate themselves for this increased risk, creditors demand higher interest rates or require ...

Empirical evidence on peer intermediation lags behind many years of lending practice and a large body of theory in which lenders use peers to mitigate adverse selection and moral hazard. Using a simple referral incentive mechanism under individual liability, we develop and implement a two-stage field experiment that permits separate identification of peer screening and enforcement effects. We a...

Cytochromes P450 metabolize arachidonic acid (AA) into two vasoactive oxylipins with opposing biologic effects: epoxyeicosatrienoic acids (EETs) and omega-(ω)-terminal hydroxyeicosatetraenoic acids (HETEs). EETs have numerous beneficial physiological effects, including vasodilation and protection against ischemia/reperfusion injury, whereas ω-terminal HETEs induce vasoconstriction and vascular ...

Abstract We compare the performance of a wide set regression techniques and machine-learning algorithms for predicting recovery rates on non-performing loans, using private database from European debt collection agency. find that rule-based such as Cubist, boosted trees, random forests perform significantly better than other approaches. In addition to loan contract specificities, predictors ref...

Credit scoring models are normally built using only applicants who have been previously accepted for credit. Such non-random sample selection may produce bias in estimated model parameters and accordingly model predictions of repayment performance may not be optimal. Previous empirical research suggests that omission of rejected applicants has a detrimental impact on model estimation and predic...

This paper uses data from Uganda’s largest incumbent microfinance institution to analyze the impact of entry by competing lenders on client behavior. We examine the geographic placement decisions of competitors, and find that lenders of different types cluster spatially and have pushed into rural areas in recent years. We observe that increased competition induces a decline in repayment perform...