Catholic University of Rio de Janeiro (PUC-Rio)
Rua Marquês de São Vicente, 225
22451-900 Rio de Janeiro, RJ
Information about this author at RePEc
NBER Working Papers and Publications
|February 2012||Repossession and the Democratization of Credit|
with Efraim Benmelech, Fernando S. S. Silva: w17858
We exploit a 2004 credit reform in Brazil that simplified the sale of repossessed cars used as collateral for auto loans. We show that the change has led to larger loans with lower spreads and longer maturities. The reform expanded credit to riskier, low-income borrowers for newer, more expensive cars. Although the credit reform improved riskier borrowers' access to credit, it also led to increased incidences of delinquency and default. Our results shed light on the consequences of a credit reform, highlighting the crucial role that collateral and repossession play in the liberalization and democratization of credit.
Benmelech, Efraim, Juliano Assuncao and Fernando S. S. Silva. Forthcoming. Repossession and the Democratization of Credit. Review of Financial Studies. citation courtesy of
|October 2007||Rent Seeking and the Unveiling of 'De Facto' Institutions: Development and Colonial Heritage within Brazil|
with Joana Naritomi, Rodrigo R. Soares: w13545
This paper analyzes the roots of variation in de facto institutions, within a constant de jure institutional setting. We explore the role of rent-seeking episodes in colonial Brazil as determinants of the quality of current local institutions, and argue that this variation reveals a de facto dimension of institutional quality. We show that municipalities with origins tracing back to the sugar-cane colonial cycle -- characterized by a polarized and oligarchic socioeconomic structure -- display today more inequality in the distribution of land. Municipalities with origins tracing back to the gold colonial cycle -- characterized by an over-bureaucratic and heavily intervening presence of the Portuguese state -- display today worse governance practices and less access to justice. The colonial ...