Contagious loan default

C-Tier
Journal: Economics Letters
Year: 2018
Volume: 170
Issue: C
Pages: 14-18

Score contribution per author:

1.005 = (α=2.01 / 1 authors) × 0.5x C-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

Applying survival analysis to a large loan-level dataset for regulatory purposes on group loans provided by Mexican banks, I find that ex-post credit risk is subject to substantial geographic spillover effects. Potential underlying mechanisms include contagious defaulting behavior, which bears the risk of proliferating into a repayment crisis in the event of an economic or political shock, as experiences from similar markets suggest.

Technical Details

RePEc Handle
repec:eee:ecolet:v:170:y:2018:i:c:p:14-18
Journal Field
General
Author Count
1
Added to Database
2026-01-25