演講者簡介 : Professor Chun-Che Chi received his Ph.D. in Economics from Columbia University in 2020. He is currently an Assistant Research Fellow at Institute of Economics, Academia Sinica. His research interests are international macroeconomics, monetary economics, and finance.
演講摘要 : This paper studies how lender structure affects credit conditions in open economies
via a model with lenders of different sizes. Unlike atomic lenders who foreclose on all
collateral when borrowers default, large lenders internalize the pecuniary externality
whereby selling seized collateral injects supply and reduces the collateral price. Thus, a
more concentrated lender structure alleviates the severity of sudden stops via a higher
collateral price, thus demanding less precautionary saving by decentralized borrowers
and increasing overborrowing. I document that the lender structure of the external
debt of emerging countries is more concentrated than that of advanced countries, and
thus emerging countries tend to overborrow. This explains overborrowing alternative
to the pecuniary externality of borrowers often highlighted in the literature. Under
plausible parameterization, the size of the pecuniary externality internalized by lenders
is one-third of that internalized by borrowers. Finally, allowing lender countries to
choose lender structure optimally will increase lender concentration, raising debts and
lowering borrowers’ consumption by 3.5%.
