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Full-Text Articles in Urban Studies and Planning
Curriculum Vitae, Pingkang Yu
学术履历, Pingkang Yu
1. Costly Screening, Self Selection, And The Existence Of A Pooling Equilibrium In Credit Markets (Job Market Paper), Pingkang Yu
1. Costly Screening, Self Selection, And The Existence Of A Pooling Equilibrium In Credit Markets (Job Market Paper), Pingkang Yu
Pingkang Yu
This paper presents a credit market model that embeds a costly, universal and imperfect screening technology in an otherwise simple model with borrower self-selection and costly lender screening. Contrary to the result in previous models, such as Wang and Williamson (1998) with random screening, the combination of universal screening and type I screening error produces pooling equilibrium as a non-trivial outcome. This result suggests that generalized lenders engaged in price rationing can sometimes compete with specialized lenders serving a single borrower type in credit markets that relies on costly lender screening as a sorting device.
2. Screening Cost, Credit Risk, And The Optimal Structure Of Mortgage Lending—Origin Of The Subprime Mortgage Crisis, Pingkang Yu
2. Screening Cost, Credit Risk, And The Optimal Structure Of Mortgage Lending—Origin Of The Subprime Mortgage Crisis, Pingkang Yu
Pingkang Yu
This paper attempts to answer a direct question—who should get mortgage credit and how should that credit be supplied? This question is at the heart of the recent subprime crisis and the efforts to reform mortgage lending through new regulations. This paper develops a credit market model with borrower’s self-selection and lender’s costly screening. Borrowers in the model differ in both screening cost and credit risk. In particular, the model includes fraudulent borrowers and low-risk-high-documentation-cost borrowers. The paper finds that separating equilibrium, where specialized lender serves the targeted type of borrower, is the only feasible market structure in the long …
Research Statement, Pingkang Yu
Research Statement, Pingkang Yu
Update New England, Pingkang Yu
Update New England, Pingkang Yu
Pingkang Yu
Quarterly publication from 2003 to 2005 for the comprehensive coverage of economic conditions