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

PSC In The News

RSS Feed icon

Shaefer and Edin's book ($2 a Day) cited in piece on political debate over plight of impoverished Americans

Eisenberg tracks factors affecting both mental health and athletic/academic performance among college athletes

Shapiro says Americans' low spending reflects "cruel lesson" about the dangers of debt

Highlights

Susan Murphy elected to the National Academy of Sciences

Maggie Levenstein named director of ISR's Inter-university Consortium for Political and Social Research

Arline Geronimus receives 2016 Harold R. Johnson Diversity Service Award

PSC spring 2016 newsletter: Kristin Seefeldt, Brady West, newly funded projects, ISR Runs for Bob, and more

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