Replication data for: Modeling the Revolving Revolution: The Debt Collection Channel

Principal Investigator(s): View help for Principal Investigator(s) Lukasz A. Drozd; Ricardo Serrano-Padial

Name	File Type	Size	Last Modified
Data			10/26/2021 01:07:PM
Model			10/26/2021 01:07:PM
LICENSE.txt	text/plain	14.6 KB	12/06/2019 11:59:AM
Read_me.pdf	application/pdf	131 KB	12/06/2019 11:59:AM

Project Citation:

Drozd, Lukasz A., and Serrano-Padial, Ricardo. Replication data for: Modeling the Revolving Revolution: The Debt Collection Channel. Nashville, TN: American Economic Association [publisher], 2017. Ann Arbor, MI: Inter-university Consortium for Political and Social Research [distributor], 2019-12-06. https://doi.org/10.3886/E116148V1

Project Description

Summary: We investigate the role of information technology (IT) in the collection of delinquent consumer debt. We argue that the widespread adoption of IT by the debt collection industry in the 1990s contributed to the observed expansion of unsecured risky lending such as credit cards. Our model stresses the importance of delinquency and private information about borrower solvency. The prevalence of delinquency implies that the costs of debt collection must be borne by lenders to sustain incentives to repay debt. IT mitigates informational asymmetries, allowing lenders to concentrate collection efforts on delinquent borrowers who are more likely to repay.

Scope of Project

JEL Classification:
      D14 Household Saving; Personal Finance
      D82 Asymmetric and Private Information; Mechanism Design
      G21 Banks; Depository Institutions; Micro Finance Institutions; Mortgages
      L84 Personal, Professional, and Business Services
      M15 IT Management
      O33 Technological Change: Choices and Consequences; Diffusion Processes

Geographic Coverage: United States

Universe: All households in the US.

Data Type(s): other:; aggregate data

Methodology

Data Source: Experian, The Board of Governors of the Federal Reserve System.

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Published Versions

V1 [2019-12-06]

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DDI 2.5

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