Econ 101b: March 31, 2008 Lecture: Markets for "Lemons"

Notes: Lecture Audio. Adverse Selection in Lending Markets.

Readings:

• George A. Akerlof (Aug. 1970). "The Market for 'Lemons': Quality Uncertainty and the Market Mechanism". Quarterly Journal of Economics 84 (3): 488–500 http://links.jstor.org/sici?sici=0033-5533%28197008%2984%3A3%3C488%3ATMF%22QU%3E2.0.CO%3B2-6
• J. Bradford DeLong, "Dealing with Adverse Selection in the Mortgage Market"
• Mark Thoma, "Adverse Selection, Loan Defaults, and Credit Rationing"
• J. Bradford DeLong, Comment on Lawrence Summers, "Safeguarding America's Economy from Adverse Consequences of Financial Crisis"
  • Hoisted from Comments: Bank Capitalization