The pandemonics of informal credit markets
Autor(a) principal: | |
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Data de Publicação: | 2020 |
Outros Autores: | |
Tipo de documento: | Artigo |
Idioma: | eng |
Título da fonte: | Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) |
Texto Completo: | http://hdl.handle.net/10400.5/20377 |
Resumo: | Credit markets are at the core of any economic crisis, and informal loans are largely understudied. We collect a dataset on an online informal lending community to study the impact that the 2020 pandemic crisis had on informal credit markets. We find that these informal loans are short duration, expensive and that borrowers and lenders exhibit some sense of community. Our results suggest that the financial hardship imposed by stay at home orders is perceived as persistent, and borrowers expect lower future income, hence reducing loan demand. Moreover, loans directly associated with the pandemic are more likely to be transacted by newcomers to this market, and mentioning the pandemic in a loan request lowers the chance that it originates a loan. The absence of an increase of violations of community rules and the reduction in promised repayment time highlights the importance of informal credit communities in hard times. |
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The pandemonics of informal credit marketsinformal creditonline lendingpandemicnon-pharmaceutical interventionsCredit markets are at the core of any economic crisis, and informal loans are largely understudied. We collect a dataset on an online informal lending community to study the impact that the 2020 pandemic crisis had on informal credit markets. We find that these informal loans are short duration, expensive and that borrowers and lenders exhibit some sense of community. Our results suggest that the financial hardship imposed by stay at home orders is perceived as persistent, and borrowers expect lower future income, hence reducing loan demand. Moreover, loans directly associated with the pandemic are more likely to be transacted by newcomers to this market, and mentioning the pandemic in a loan request lowers the chance that it originates a loan. The absence of an increase of violations of community rules and the reduction in promised repayment time highlights the importance of informal credit communities in hard times.ISEG - REM - Research in Economics and MathematicsRepositório da Universidade de LisboaCorreia, FilipeMartins, António2020-09-22T16:12:30Z2020-092020-09-01T00:00:00Zinfo:eu-repo/semantics/publishedVersioninfo:eu-repo/semantics/articleapplication/pdfhttp://hdl.handle.net/10400.5/20377engCorreia, Filipe e António Martins (2020). "The pandemonics of informal credit markets". Instituto Superior de Economia e Gestão – REM Working paper nº 0142 – 20202184-108Xinfo:eu-repo/semantics/openAccessreponame:Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)instname:Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informaçãoinstacron:RCAAP2023-03-06T14:49:49Zoai:www.repository.utl.pt:10400.5/20377Portal AgregadorONGhttps://www.rcaap.pt/oai/openaireopendoar:71602024-03-19T17:05:08.496085Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) - Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informaçãofalse |
dc.title.none.fl_str_mv |
The pandemonics of informal credit markets |
title |
The pandemonics of informal credit markets |
spellingShingle |
The pandemonics of informal credit markets Correia, Filipe informal credit online lending pandemic non-pharmaceutical interventions |
title_short |
The pandemonics of informal credit markets |
title_full |
The pandemonics of informal credit markets |
title_fullStr |
The pandemonics of informal credit markets |
title_full_unstemmed |
The pandemonics of informal credit markets |
title_sort |
The pandemonics of informal credit markets |
author |
Correia, Filipe |
author_facet |
Correia, Filipe Martins, António |
author_role |
author |
author2 |
Martins, António |
author2_role |
author |
dc.contributor.none.fl_str_mv |
Repositório da Universidade de Lisboa |
dc.contributor.author.fl_str_mv |
Correia, Filipe Martins, António |
dc.subject.por.fl_str_mv |
informal credit online lending pandemic non-pharmaceutical interventions |
topic |
informal credit online lending pandemic non-pharmaceutical interventions |
description |
Credit markets are at the core of any economic crisis, and informal loans are largely understudied. We collect a dataset on an online informal lending community to study the impact that the 2020 pandemic crisis had on informal credit markets. We find that these informal loans are short duration, expensive and that borrowers and lenders exhibit some sense of community. Our results suggest that the financial hardship imposed by stay at home orders is perceived as persistent, and borrowers expect lower future income, hence reducing loan demand. Moreover, loans directly associated with the pandemic are more likely to be transacted by newcomers to this market, and mentioning the pandemic in a loan request lowers the chance that it originates a loan. The absence of an increase of violations of community rules and the reduction in promised repayment time highlights the importance of informal credit communities in hard times. |
publishDate |
2020 |
dc.date.none.fl_str_mv |
2020-09-22T16:12:30Z 2020-09 2020-09-01T00:00:00Z |
dc.type.status.fl_str_mv |
info:eu-repo/semantics/publishedVersion |
dc.type.driver.fl_str_mv |
info:eu-repo/semantics/article |
format |
article |
status_str |
publishedVersion |
dc.identifier.uri.fl_str_mv |
http://hdl.handle.net/10400.5/20377 |
url |
http://hdl.handle.net/10400.5/20377 |
dc.language.iso.fl_str_mv |
eng |
language |
eng |
dc.relation.none.fl_str_mv |
Correia, Filipe e António Martins (2020). "The pandemonics of informal credit markets". Instituto Superior de Economia e Gestão – REM Working paper nº 0142 – 2020 2184-108X |
dc.rights.driver.fl_str_mv |
info:eu-repo/semantics/openAccess |
eu_rights_str_mv |
openAccess |
dc.format.none.fl_str_mv |
application/pdf |
dc.publisher.none.fl_str_mv |
ISEG - REM - Research in Economics and Mathematics |
publisher.none.fl_str_mv |
ISEG - REM - Research in Economics and Mathematics |
dc.source.none.fl_str_mv |
reponame:Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) instname:Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação instacron:RCAAP |
instname_str |
Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação |
instacron_str |
RCAAP |
institution |
RCAAP |
reponame_str |
Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) |
collection |
Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) |
repository.name.fl_str_mv |
Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) - Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação |
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1799131143929331712 |