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Longer loan maturity provides borrowers with insurance against future changes in the price of credit. The present paper examines whether, consistent with theories of insurance markets with private information, maturity choice leads to adverse selection. Our estimation compares two groups of observationally equivalent borrowers that took identical unsecured 36-month loans, only one of which had also a 60-month maturity choice available. We find that when long maturity is available, fewerdoi:10.2139/ssrn.2629383 fatcat:k4y2eob2indltpxon74nr4ua2y