This paper develops a model for joint liability borrowings that facilitates credit market transactions ex ante, but may induce the borrower's suicide ex post through the stigma associated with default. A Japanese suicide survey provides some supportive evidence.
Bibliographical noteFunding Information:
We gratefully acknowledge comments from Hidehiko Ichimura, Dean Karlan, Edward Miguel, Jonathan Morduch, and Tomoya Suzuki. This research is supported financially by the Research Center for the Relationship between Market Economy and Non-market Institutions (CEMANO) , and 21st Century Center of Excellence (COE) Program of the Graduate School of Economics, University of Tokyo . We also thank an anonymous referee for his/her constructive comments and suggestions.
All Science Journal Classification (ASJC) codes
- Economics and Econometrics