Using data from a leading Italian microfinance provider we investigate the effect of kinship relations between borrowers and cosigners on loan defaults. We address causality issues using an instrumental variable built on the exogenous rule imposed by the lender that requires personal guarantees for loans exceeding € 5000. Results show that the presence of closely related cosigners tends to reduce defaults. We find that this is the result of a possible combined effect of both stronger solidarity and more effective psychological pressure exerted by relatives compared to other categories of cosigners.
dalla Pellegrina, L., & Scollo, A. (2016). The Role of Borrower-Cosigner Kinship Relations on Loan Default: Evidence from Italy. ITALIAN ECONOMIC JOURNAL, 2(3), 421-444.
Citazione: | dalla Pellegrina, L., & Scollo, A. (2016). The Role of Borrower-Cosigner Kinship Relations on Loan Default: Evidence from Italy. ITALIAN ECONOMIC JOURNAL, 2(3), 421-444. |
Tipo: | Articolo in rivista - Articolo scientifico |
Carattere della pubblicazione: | Scientifica |
Presenza di un coautore afferente ad Istituzioni straniere: | No |
Titolo: | The Role of Borrower-Cosigner Kinship Relations on Loan Default: Evidence from Italy |
Autori: | dalla Pellegrina, L; Scollo, A |
Autori: | |
Data di pubblicazione: | 2016 |
Lingua: | English |
Rivista: | ITALIAN ECONOMIC JOURNAL |
Digital Object Identifier (DOI): | http://dx.doi.org/10.1007/s40797-016-0039-6 |
Appare nelle tipologie: | 01 - Articolo su rivista |