Lending to Lemons: Landschafts-Credit in 18th Century Prussia
The following paper describes the emergence of cooperative mortgage credit associations, called "Landschaften" in 18th century Prussia, and thereby tells the history of mortgage-covered bonds. Landschaften facilitated the refinancing of loans for Prussian estates by issuing covered bonds (Pfandbriefe) that were jointly backed by their members. They relied on dual recourse, cooperative structure, joint liability, and local administration to overcome asymmetric information problems related to lending. Their emergence serves as an example for financial innovation in historical mortgage markets. Pfandbriefe exist to this day and are known for their security. Their success goes back to some of the historical features.
|Date of creation:||Jun 2013|
|Publication status:||published as Lending to Lemons: Landschaft Credit in Eighteenth-Century Prussia , Kirsten Wandschneider. in Housing and Mortgage Markets in Historical Perspective , White, Snowden, and Fishback. 2014|
|Contact details of provider:|| Postal: National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.|
Web page: http://www.nber.org
More information through EDIRC
References listed on IDEAS
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.:
- D. M. Frederiksen, 1894. "Mortgage Banking in America," Journal of Political Economy, University of Chicago Press, vol. 2, pages 203-203.
- Eddie, Scott M., 2008. "Landownership in Eastern Germany Before the Great War: A Quantitative Analysis," OUP Catalogue, Oxford University Press, number 9780198201663, December.
- Philip T. Hoffman & Gilles Postel-Vinay & Jean-Laurent Rosenthal, 2008. "History, Geography, and the Markets for Mortgage Loans in Nineteenth-Century France," NBER Chapters, in: Understanding Long-Run Economic Growth: Geography, Institutions, and the Knowledge Economy, pages 155-176 National Bureau of Economic Research, Inc.
- George A. Akerlof, 1970. "The Market for "Lemons": Quality Uncertainty and the Market Mechanism," The Quarterly Journal of Economics, Oxford University Press, vol. 84(3), pages 488-500.
When requesting a correction, please mention this item's handle: RePEc:nbr:nberwo:19159. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ()
If references are entirely missing, you can add them using this form.