Home > Research > Publications & Outputs > Learning‐by‐lending and learning‐by‐repaying

Electronic data

  • 0. MDE RR1_v2_clean

    Rights statement: This is the peer reviewed version of the following article: Patel, P. C., & Tsionas, M. G. (2021). Learning-by-lending and learning-by-repaying: A two-sided learning model for defaults on Small Business Administration loans. Managerial and Decision Economics, 1– 14. https://doi.org/10.1002/mde.3426 which has been published in final form at https://onlinelibrary.wiley.com/doi/10.1002/mde.3426 This article may be used for non-commercial purposes in accordance With Wiley Terms and Conditions for self-archiving.

    Accepted author manuscript, 428 KB, PDF document

    Embargo ends: 3/08/23

    Available under license: CC BY-NC: Creative Commons Attribution-NonCommercial 4.0 International License

Links

Text available via DOI:

View graph of relations

Learning‐by‐lending and learning‐by‐repaying: A two‐sided learning model for defaults on Small Business Administration loans

Research output: Contribution to Journal/MagazineJournal articlepeer-review

Published
<mark>Journal publication date</mark>30/06/2022
<mark>Journal</mark>Managerial and Decision Economics
Issue number4
Volume43
Number of pages14
Pages (from-to)906-919
Publication StatusPublished
Early online date3/08/21
<mark>Original language</mark>English

Abstract

Drawing on a sample of Small Business Administration (SBA) loans, we develop and test for a two-sided dynamic learning model to assess the degree of learning-by-lending in bank branches and learning-by-repaying for borrowers. The results show that learning-by-lending is negligible; however, learning-by-repaying is small but meaningful, with a shallow learning curve slope of 0.2. The findings have implications for two-sided learning and for policymakers aiming to lower defaults in SBA loans.

Bibliographic note

This is the peer reviewed version of the following article: Patel, P. C., & Tsionas, M. G. (2021). Learning-by-lending and learning-by-repaying: A two-sided learning model for defaults on Small Business Administration loans. Managerial and Decision Economics, 1– 14. https://doi.org/10.1002/mde.3426 which has been published in final form at https://onlinelibrary.wiley.com/doi/10.1002/mde.3426 This article may be used for non-commercial purposes in accordance With Wiley Terms and Conditions for self-archiving.