@techreport{c48ae434eadf437fb4dbc9d9879acb3f,
title = "Of Religion and Redemption: Evidence from Default on Islamic Loans (Replaced by CentER DP 2012-014)",
abstract = "We study default rates on conventional and Islamic loans using a comprehensive monthly dataset from Pakistan that follows more than 150,000 loans over the period 2006:04 to 2008:12. We find robust evidence that the hazard rate on Islamic loans is less than half the hazard rate on conventional loans. Across duration models we include a variety of loan contract, borrower, and bank characteristics, where possible combined with time, borrower, bank and/or borrower*bank fixed effects. In big cities Islamic loans default less likely if the share of religious parties increases, suggesting that religious motivation may determine loan default.",
keywords = "Loan Default, Islamic Loans, Religion, Duration Analysis",
author = "L. Baele and M. Farooq and S. Ongena",
note = "This is also EBC Discussion Paper 2010-32 Pagination: 46",
year = "2010",
language = "English",
volume = "2010-136",
series = "CentER Discussion Paper",
publisher = "Finance",
type = "WorkingPaper",
institution = "Finance",
}