The government does not track default rates among online lenders, which disclose little on their own."We are worried that in an environment where there is no effective credit system, people tend to
overborrow, especially when capital comes in," said Bai Chengyu, an executive at the China Association of Microfinance, who is no relation to Bai Shichao.
Some students "
overborrow," taking out student loans that are beyond the manageable level of their eventual post-college job prospects and income.
On this view, states systematically
overborrow as they try to impose the losses associated with bad fiscal conditions on sister states through the use of federal-government resources.
they
overborrow, often because consumers have a tendency to focus too
(69) They argue that these sorts of restrictions are likely to be palatable because they benefit the unsophisticated consumers--those who
overborrow and must pay these penalties--and have no effect on sophisticated consumers who would not have to pay these penalties in any event.
Countries like Austria, Canada, the Philippines, Lesotho and Uruguay cannot match the world's growth champions, because they do not
overborrow or sustain a mercantilist economic model.
quasi-sovereign debtor's propensity to
overborrow and engage in
Their current attitude probably won't alter this year, and indeed there is a suggestion that the government would actually prefer to see property prices stagnate now for a period of several years, allowing property to become slowly more affordable again by way of gradually rising average earnings, rather than engineering an artificial quick fix today which would probably only cause people to
overborrow again tomorrow.
Since the ESCO receives no payments from the agency until the equipment is installed and accepted, the ESCO must
overborrow in order to make interest payments on the loan during the construction period.
Abstract: Credit constraints that link a private agent's debt to market-determined prices embody a credit externality that drives a wedge between competitive and constrained socially optimal equilibria, inducing private agents to
overborrow. The externality arises because agents fail to internalize the debt-deflation effects of additional borrowing when negative income shocks trigger the credit constraint.
(278) Therefore, even if a consumer is aware of her tendency to
overborrow, she might be able to do very little about it.