Home > Research . Search . Country . Browse . Small Grants

PSC In The News

RSS Feed icon

Thompson casts doubt on the rehabilitative intentions of prison labor

Inglehart says European social democracy is a victim of its own success

Bound, Khanna, and Morales find multiple effects of H1-B visas on US tech industry

More News

Highlights

Heather Ann Thompson wins Bancroft Prize for History for 'Blood in the Water'

Michigan ranks in USN&WR top-10 grad schools for sociology, public health, labor economics, social policy, social psychology

Paula Lantz to speak at Women in Health Leadership Summit, March 24, 2:30-5:30 Michigan League

New site highlights research, data, and publications of Relationship Dynamics and Social Life study

More Highlights

Next Brown Bag

Mon, March 20, 2017, noon:
Dean Yang, Taken by Storm

Dean Yang photo

COLLABORATIVE RESEARCH: Fingerprinting to Reduce Risky Borrowing

a PSC Research Project

Investigator:   Dean Yang

The research will quantify the credit market and household-level impacts of improved personal identification of borrowers in a developing country setting. The research implements a randomized controlled trial on technology to collect digital fingerprints of microloan borrowers in Malawi. Owing to the absence of alternative effective means of establishing personal identity, fingerprinting allows a significant improvement in the ability of Malawian lenders to implement dynamic repayment incentives, which involve conditioning future credit access on a borrower?s past repayment performance. A previous study, Gine, Goldberg, and Yang (2012), found that fingerprinting leads to higher repayment and fewer behaviors related to adverse selection and moral hazard among Malawian borrowers, with impacts concentrated among the ?worst? borrowers (those in the bottom quintile of credit scores.) To answer additional key questions, this study proposes a larger sample size, a longer time frame, and local-level variation in treatment intensity. In addition, also unlike the previous study, participating microlenders will provide fingerprint-matched credit records to commercial credit reference bureaus, which should increase the impact and practical relevance of the intervention. Impacts will be assessed using administrative data from microlenders in combination with two years of survey data on borrowers and loan officers.

Funding Period: 06/01/2015 to 05/31/2018

Search . Browse