Search and Screening in Credit Markets

  title={Search and Screening in Credit Markets},
  author={Sumit Agarwal and John Grigsby and Ali Hortaçsu and Gregor Matvos and Amit Seru and Vincent Yao},
This paper studies the patterns and implications of search in credit markets using a novel dataset detailing search behavior for a large sample of mortgage borrowers. We match information on mortgage applications to lender rejection decisions, credit bureau data, and to detailed loan-level information for successful mortgage borrowers. Consistent with search models, we find substantial dispersion in mortgage rates and search. The monotonically negative relationship between search and realized… CONTINUE READING