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PhD

University of Wisconsin-Madison

Joint Economics & Finance

MS

University of Wisconsin-Madison

Economics

MS

University of Texas at Austin

Data Science

BA Hons.

University of Toronto

Economics

Research Assistant to Prof. Jean-Francois Houde

University of Wisconsin-Madison

External Academic Consultant

Bank of Canada

Analyst

Bank of Canada

Research Assistant

Bank of Canada

Young Scholars Best Paper Award

Georgia Tech–Atlanta Fed Household Finance Conference

Best Third Year Finance Research Paper Scholarship

University of Wisconsin-Madison

Juli Plant Grainger Summer Research Fellowship

University of Wisconsin-Madison

Doctoral Fellowship

Social Sciences and Humanities Research Council

Women in Economics Scholarship

Bank of Canada

Best Undergraduate Paper

Canadian Economics Association

President's Scholar Program Scholarship

University of Toronto

Adverse Selection and Learning in Consumer Credit Market

Working Paper

This paper highlights a trade-off in credit markets between regulatory safeguards for informed consent and the informational frictions they can amplify. In our empirical setting, we find that requiring lenders to garner explicit consent prior to raising clients' credit limits induces adverse selection. We find disproportionately higher take-up among riskier borrowers, as measured by increased utilization, delinquency, and charge-offs, which worsens the risk profile of accounts that receive a credit limit increase. In response to the policy, we find that lenders decreased the size of credit limit increases, yet simultaneously gave more frequent limit increases. We develop a model of lender credit limit provision to study the role of adverse selection and learning. We show that learning from acceptance decisions can rationalize lenders' increased frequency of credit limit increases, while adverse selection can rationalize the decline in the size of credit limit increases.