Home > Publications . Search All . Browse All . Country . Browse PSC Pubs . PSC Report Series

PSC In The News

RSS Feed icon

Do universities need more conservative thinkers?

Geronimus says black-white differences in mortality "help silence black voices in the electorate"

Starr critical of risk assessment scores for sentencing

Highlights

Presentation on multilevel modeling using Stata, July 26th, noon, 6050 ISR

Frey's new report explores how the changing US electorate could shape the next 5 presidential elections, 2016 to 2032

U-M's Data Science Initiative offers expanded consulting services via CSCAR

Elizabeth Bruch promoted to Associate Professor

Next Brown Bag

PSC Brown Bags
will resume fall 2016

Credit Market Consequences of Improved Personal Identification: Field Experimental Evidence from Malawi

Publication Abstract

Gine, X., J. Goldberg, and Dean Yang. 2012. "Credit Market Consequences of Improved Personal Identification: Field Experimental Evidence from Malawi." American Economic Review, 102(6): 2923-2954.

We implemented a randomized field experiment in Malawi examining borrower responses to being fingerprinted when applying for loans. This intervention improved the lender's ability to implement dynamic repayment incentives, allowing it to withhold future loans from past defaulters while rewarding good borrowers with better loan terms. As predicted by a simple model, fingerprinting led to substantially higher repayment rates for borrowers with the highest ex ante default risk, but had no effect for the rest of the borrowers. We provide unique evidence that this improvement in repayment rates is accompanied by behaviors consistent with less adverse selection and lower moral hazard. (JEL D14, D82, G21, O12, O16)

DOI:10.1257/aer.102.6.2923 (Full Text)

Country of focus: Malawi.

Browse | Search : All Pubs | Next