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

Patel, Pankaj C. and Tsionas, Mike 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. ISSN 0143-6570

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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.

Item Type:
Journal Article
Journal or Publication Title:
Managerial and Decision Economics
Additional Information:
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.
Uncontrolled Keywords:
/dk/atira/pure/subjectarea/asjc/1400/1405
Subjects:
ID Code:
169620
Deposited By:
Deposited On:
03 May 2022 13:50
Refereed?:
Yes
Published?:
Published
Last Modified:
03 May 2022 13:50