Arbeitspapier

Consumer bankruptcy and information

We analyze the relationship between the intensity of banks' use of soft-information and household bankruptcy patterns. Using a unique data set on the universe of Canadian household bankruptcies, we document that bankruptcy rates are higher in markets where the collection of soft, or qualitative locally gathered information, is the weakest. Using two Canadian bank mergers as exogenous variation in local market structure, we show that the differences in bankruptcy rates are not due to changes in the supply of credit. Our findings indicate that screening via hard-information is not a perfect substitute for softinformation. Instead, the two appear to be complements.

Language
Englisch

Bibliographic citation
Series: Bank of Canada Working Paper ; No. 2012-18

Classification
Wirtschaft
Subject
Financial institutions
Financial services

Event
Geistige Schöpfung
(who)
Allen, Jason
Damar, H. Evren
Martinez-Miera, David
Event
Veröffentlichung
(who)
Bank of Canada
(where)
Ottawa
(when)
2012

DOI
doi:10.34989/swp-2012-18
Handle
Last update
10.03.2025, 11:44 AM CET

Data provider

This object is provided by:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.

Object type

  • Arbeitspapier

Associated

  • Allen, Jason
  • Damar, H. Evren
  • Martinez-Miera, David
  • Bank of Canada

Time of origin

  • 2012

Other Objects (12)