Abstract
Previous research has analyzed the problem faced by borrowers who must choose between fixed rate and variable rate loans when each loan carries different cost and risk characteristics and the borrowers face various income and employment prospects. In addition, the existing literature contains theoretical and empirical studies of how lenders react when given the ability to offer both fixed and variable rate financing. This article unifies the two strands of research to develop and test a model of the equilibrium proportion of variable rate lending. Results indicate that factors related to borrower, lender, and market characteristics are significant determinants of the equilibrium proportion of variable rate credit originated.
| Original language | English (US) |
|---|---|
| Pages (from-to) | 49-60 |
| Number of pages | 12 |
| Journal | Journal of Financial Services Research |
| Volume | 6 |
| Issue number | 1 |
| DOIs | |
| State | Published - May 1 1992 |
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ASJC Scopus subject areas
- Accounting
- Finance
- Economics and Econometrics
Cite this
Fixed versus variable rate financing : The influence of borrower, lender, and market characteristics. / Goldberg, Lawrence G.; Heuson, Andrea.
In: Journal of Financial Services Research, Vol. 6, No. 1, 01.05.1992, p. 49-60.Research output: Contribution to journal › Article
}
TY - JOUR
T1 - Fixed versus variable rate financing
T2 - The influence of borrower, lender, and market characteristics
AU - Goldberg, Lawrence G.
AU - Heuson, Andrea
PY - 1992/5/1
Y1 - 1992/5/1
N2 - Previous research has analyzed the problem faced by borrowers who must choose between fixed rate and variable rate loans when each loan carries different cost and risk characteristics and the borrowers face various income and employment prospects. In addition, the existing literature contains theoretical and empirical studies of how lenders react when given the ability to offer both fixed and variable rate financing. This article unifies the two strands of research to develop and test a model of the equilibrium proportion of variable rate lending. Results indicate that factors related to borrower, lender, and market characteristics are significant determinants of the equilibrium proportion of variable rate credit originated.
AB - Previous research has analyzed the problem faced by borrowers who must choose between fixed rate and variable rate loans when each loan carries different cost and risk characteristics and the borrowers face various income and employment prospects. In addition, the existing literature contains theoretical and empirical studies of how lenders react when given the ability to offer both fixed and variable rate financing. This article unifies the two strands of research to develop and test a model of the equilibrium proportion of variable rate lending. Results indicate that factors related to borrower, lender, and market characteristics are significant determinants of the equilibrium proportion of variable rate credit originated.
UR - http://www.scopus.com/inward/record.url?scp=0042148916&partnerID=8YFLogxK
UR - http://www.scopus.com/inward/citedby.url?scp=0042148916&partnerID=8YFLogxK
U2 - 10.1007/BF01046117
DO - 10.1007/BF01046117
M3 - Article
AN - SCOPUS:0042148916
VL - 6
SP - 49
EP - 60
JO - Journal of Financial Services Research
JF - Journal of Financial Services Research
SN - 0920-8550
IS - 1
ER -