Do bankers prefer married couples?
AbstractAre married couples more credit constrained than unmarried households? If the cost of separation increases the risk of default, banks might be willing to lend to stable couples. In presence of incomplete information, marriage could be used as a signal of the quality of the match. This paper investigates the link between marriage and credit constraints. I use matching methods to evaluate the impact of marriage on credit constraints. I find that married couples are more likely to be approved for their loan, but they bear higher costs of credit. The differences between married and unmarried couples can be attributed to selection in the marriage rather than to discrimination against unmarried couples.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by HAL in its series Working Papers with number halshs-00655584.
Date of creation: Apr 2011
Date of revision:
Note: View the original document on HAL open archive server: http://halshs.archives-ouvertes.fr/halshs-00655584/en/
Contact details of provider:
Web page: http://hal.archives-ouvertes.fr/
marriage; credit constraints; signal; matching estimator;
This paper has been announced in the following NEP Reports:
- NEP-ALL-2012-01-18 (All new papers)
- NEP-BAN-2012-01-18 (Banking)
- NEP-CTA-2012-01-18 (Contract Theory & Applications)
- NEP-DEM-2012-01-18 (Demographic Economics)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Ke Chen Chen & Mali Chivakul, 2008. "What Drives Household Borrowing and Credit Constraints? Evidence from Bosnia & Herzegovina," IMF Working Papers 08/202, International Monetary Fund.
- Betsey Stevenson & Justin Wolfers, 2007.
"Marriage and Divorce: Changes and their Driving Forces,"
Journal of Economic Perspectives,
American Economic Association, vol. 21(2), pages 27-52, Spring.
- Betsey Stevenson & Justin Wolfers, 2007. "Marriage and divorce: changes and their driving forces," Working Paper Series 2007-03, Federal Reserve Bank of San Francisco.
- Stevenson, Betsey & Wolfers, Justin, 2007. "Marriage and Divorce: Changes and their Driving Forces," IZA Discussion Papers 2602, Institute for the Study of Labor (IZA).
- Stevenson, Betsey & Wolfers, Justin, 2007. "Marriage and Divorce: Changes and their Driving Forces," CEPR Discussion Papers 6144, C.E.P.R. Discussion Papers.
- Betsey Stevenson & Justin Wolfers, 2007. "Marriage and Divorce: Changes and their Driving Forces," NBER Working Papers 12944, National Bureau of Economic Research, Inc.
- Jaffee, Dwight M & Russell, Thomas, 1984. "Imperfect Information, Uncertainty, and Credit Rationing: A Reply," The Quarterly Journal of Economics, MIT Press, vol. 99(4), pages 869-72, November.
- Patrick Kline, 2011. "Oaxaca-Blinder as a Reweighting Estimator," American Economic Review, American Economic Association, vol. 101(3), pages 532-37, May.
- Midori Wakabayashi & Charles Yuji Horioka, 2005.
"Borrowing Constraints and Consumption Behavior in Japan,"
NBER Working Papers
11560, National Bureau of Economic Research, Inc.
- Midori Wakabayashi & Charles Yuji Horioka, 2005. "Borrowing Constraints and Consumption Behavior in Japan," ISER Discussion Paper 0640, Institute of Social and Economic Research, Osaka University.
- Michael J. Brien & Lee A. Lillard & Steven Stern, 2006.
"Cohabitation, Marriage, And Divorce In A Model Of Match Quality,"
International Economic Review,
Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 47(2), pages 451-494, 05.
- Steven Stern & Michael J. Brien & Lee A. Lillard, 1999. "Cohabitation, Marriage, and Divorce in a Model of Match Quality," Virginia Economics Online Papers 322, University of Virginia, Department of Economics.
- Duca, John V. & Rosenthal, Stuart S., 1994. "Borrowing constraints and access to owner-occupied housing," Regional Science and Urban Economics, Elsevier, vol. 24(3), pages 301-322, June.
- Marion Leturcq, 2011. "Competing marital contracts? The marriage after civil union in France," Working Papers halshs-00655585, HAL.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (CCSD).
If references are entirely missing, you can add them using this form.