| CIRJE-F-534 | "Joint Liability Borrowing and Suicide" |
| Author Name | Chen, Joe, Yun Jeong Choi and Yasuyuki Sawada |
| Date | December 2007 |
| Full Paper | PDF file |
| Remarks | @Economics Letters 109 (2), November 2010, Pages 69-71. |
| Abstract |
This paper shows that joint liability borrowing may put too much pressure on the borrower, mainly through the stigma in case of repayment failure, and leads to a vexing outcome|the suicide of the borrower. We provide a model of joint liabil- ity borrowing which facilitates credit market transaction ex ante but may induce suicides ex post in the bad state. We introduce some supportive evidence from a suicide survey in Japan. |