Objectives and incentives in financial markets

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dc.contributor.authorLiu, Chung-shuen
dc.contributor.committeechairHaller, Hans H.en
dc.contributor.committeememberEckel, Catherine C.en
dc.contributor.committeememberGilles, Robert P.en
dc.contributor.committeememberKats, Amozen
dc.contributor.committeememberWang, Yongen
dc.contributor.departmentEconomicsen
dc.date.accessioned2014-03-14T21:22:11Zen
dc.date.adate2005-10-24en
dc.date.available2014-03-14T21:22:11Zen
dc.date.issued1994-04-15en
dc.date.rdate2005-10-24en
dc.date.sdate2005-10-24en
dc.description.abstractThis dissertation is a collection of papers investigating objectives and incentives in financial markets. The first essay (Chapter 2) deals with the endogenous determination of credit history, credit-worthiness, loans and efforts by borrowers over time. A financial market with adverse selection and moral hazard is analyzed. Facing the adverse selection, lenders are not able to offer separate contracts to different types of borrowers. However, knowing borrowers' credit histories, lenders are able to assign different credit worthiness to borrowers that have different credit histories, and offer different contracts to different groups. It is shown that if borrowers' credit rating is too low, they make low effort to repay their debts. As a borrower acquires a good credit history and has his credit-rating upgraded above a certain point, it becomes worthwhile for him to choose high effort. A low quality borrower may make high effort in early periods in order to build up a good credit history and obtain better terms in the future contracts then shift back to the low effort even though his project continues to succeed when he approaches the end of his life.en
dc.description.degreePh. D.en
dc.format.extentv, 78 leavesen
dc.format.mediumBTDen
dc.format.mimetypeapplication/pdfen
dc.identifier.otheretd-10242005-174015en
dc.identifier.sourceurlhttp://scholar.lib.vt.edu/theses/available/etd-10242005-174015/en
dc.identifier.urihttp://hdl.handle.net/10919/40155en
dc.language.isoenen
dc.publisherVirginia Techen
dc.relation.haspartLD5655.V856_1994.L59.pdfen
dc.relation.isformatofOCLC# 31307508en
dc.rightsIn Copyrighten
dc.rights.urihttp://rightsstatements.org/vocab/InC/1.0/en
dc.subject.lccLD5655.V856 1994.L59en
dc.subject.lcshFinance -- Mathematical modelsen
dc.titleObjectives and incentives in financial marketsen
dc.typeDissertationen
dc.type.dcmitypeTexten
thesis.degree.disciplineEconomicsen
thesis.degree.grantorVirginia Polytechnic Institute and State Universityen
thesis.degree.leveldoctoralen
thesis.degree.namePh. D.en

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