Publication:
Identification Strategy : A Field Experiment on Dynamic Incentives in Rural Credit Markets

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dc.contributor.authorGoldberg, Jessica
dc.contributor.authorGiné, Xavier
dc.contributor.authorYang, Dean
dc.date.accessioned2012-03-19T18:42:12Z
dc.date.available2012-03-19T18:42:12Z
dc.date.issued2010-10-01
dc.description.abstractHow do borrowers respond to improvements in a lender's ability to punish defaulters? This paper reports the results of a randomized field experiment in rural Malawi that examines the impact of fingerprinting borrowers in a context where a unique identification system is absent. Fingerprinting allows the lender to more effectively use dynamic repayment incentives: withholding future loans from past defaulters while rewarding good borrowers with better loan terms. Consistent with a simple model of borrower heterogeneity and information asymmetries, 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. The change in repayment rates is driven by reductions in adverse selection (smaller loan sizes) and lower moral hazard (for example, less diversion of loan-financed fertilizer from its intended use on the cash crop).en
dc.identifierhttp://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20101004091720
dc.identifier.doi10.1596/1813-9450-5438
dc.identifier.urihttps://hdl.handle.net/10986/3921
dc.languageEnglish
dc.relation.ispartofseriesPolicy Research working paper ; no. WPS 5438
dc.rightsCC BY 3.0 IGO
dc.rights.holderWorld Bank
dc.rights.urihttp://creativecommons.org/licenses/by/3.0/igo/
dc.subjectACCESS TO CAPITAL
dc.subjectACCESS TO CREDIT
dc.subjectACCESS TO FORMAL CREDIT
dc.subjectACCOUNTING
dc.subjectADVERSE SELECTION
dc.subjectAGRICULTURAL ECONOMICS
dc.subjectAGRICULTURAL LOAN
dc.subjectAGRICULTURAL LOANS
dc.subjectAGRICULTURE
dc.subjectAPPROVAL RATES
dc.subjectASYMMETRIC INFORMATION
dc.subjectBANKRUPTCY
dc.subjectBARTER
dc.subjectBORROWER
dc.subjectBORROWER BEHAVIOR
dc.subjectBORROWER BEHAVIORS
dc.subjectBORROWING
dc.subjectBRANCH
dc.subjectCASH FLOWS
dc.subjectCHECKS
dc.subjectCOLLATERAL
dc.subjectCOMPANY
dc.subjectCOMPETITOR
dc.subjectCONSUMER BANKRUPTCIES
dc.subjectCONSUMER CREDIT
dc.subjectCONSUMER FINANCE
dc.subjectCONSUMER LOAN
dc.subjectCONSUMER LOANS
dc.subjectCONVERSIONS
dc.subjectCORRUPTION
dc.subjectCOST ANALYSIS
dc.subjectCREDIBILITY
dc.subjectCREDIT ACCESS
dc.subjectCREDIT AVAILABILITY
dc.subjectCREDIT BUREAU
dc.subjectCREDIT BUREAUS
dc.subjectCREDIT CARD
dc.subjectCREDIT CARDS
dc.subjectCREDIT CONTRACT
dc.subjectCREDIT DENIAL
dc.subjectCREDIT EXPANSIONS
dc.subjectCREDIT HISTORIES
dc.subjectCREDIT HISTORY
dc.subjectCREDIT HISTORY INFORMATION
dc.subjectCREDIT INFORMATION
dc.subjectCREDIT MARKET
dc.subjectCREDIT MARKETS
dc.subjectCREDIT OFFICER
dc.subjectCREDIT OFFICERS
dc.subjectCREDIT PERFORMANCE
dc.subjectCREDIT PROVIDERS
dc.subjectCREDIT REPORTING
dc.subjectCREDIT SCORE
dc.subjectDEBT
dc.subjectDEBT RECOVERY
dc.subjectDEFAULT INFORMATION
dc.subjectDEFAULT RISK
dc.subjectDEFAULTERS
dc.subjectDEPENDENT
dc.subjectDEPOSIT
dc.subjectDEVELOPING COUNTRIES
dc.subjectDEVELOPMENT ECONOMICS
dc.subjectDONOR AGENCY
dc.subjectDOWN PAYMENT
dc.subjectDUMMY VARIABLE
dc.subjectDUMMY VARIABLES
dc.subjectECONOMETRIC MODELS
dc.subjectECONOMETRICS
dc.subjectECONOMIC DEVELOPMENT
dc.subjectECONOMIC RESEARCH
dc.subjectECONOMIC THEORY
dc.subjectECONOMICS RESEARCH
dc.subjectEQUIPMENT
dc.subjectEQUIPMENT COSTS
dc.subjectEXCHANGE RATE
dc.subjectEXCLUSION
dc.subjectEXPANSION
dc.subjectEXPORT CROPS
dc.subjectFARMER
dc.subjectFARMERS
dc.subjectFEDERAL RESERVE
dc.subjectFEDERAL RESERVE BANK
dc.subjectFEDERAL RESERVE SYSTEM
dc.subjectFINANCE CORPORATION
dc.subjectFINANCIAL DEVELOPMENT
dc.subjectFINANCIAL INNOVATIONS
dc.subjectFINANCIAL INSTITUTION
dc.subjectFINANCIAL INTERMEDIATION
dc.subjectFINANCIAL MARKETS
dc.subjectFINANCIAL RESOURCES
dc.subjectFINANCIAL SUSTAINABILITY
dc.subjectFIRMS
dc.subjectFORMAL CREDIT
dc.subjectFORMAL LOAN
dc.subjectFORMAL LOANS
dc.subjectFULL REPAYMENT
dc.subjectFUNCTIONAL FORMS
dc.subjectFUNGIBLE
dc.subjectFUTURE CREDIT
dc.subjectFUTURE LOANS
dc.subjectFUTURE RESEARCH
dc.subjectFUTURE STUDIES
dc.subjectGDP
dc.subjectGOOD CREDIT
dc.subjectGREATER ACCESS
dc.subjectGREEN REVOLUTION
dc.subjectGROUP BORROWERS
dc.subjectHIDDEN INFORMATION
dc.subjectHOLDING
dc.subjectHOUSEHOLD BANKRUPTCY
dc.subjectID
dc.subjectIMPACT OF DEBT
dc.subjectINCENTIVE EFFECTS
dc.subjectINCOME
dc.subjectINEQUALITY
dc.subjectINFORMAL INSURANCE
dc.subjectINFORMATION ASYMMETRIES
dc.subjectINFORMATION ON BORROWERS
dc.subjectINFORMATION SHARING
dc.subjectINFORMATION TECHNOLOGY
dc.subjectINITIAL LOAN
dc.subjectINSURANCE MARKET
dc.subjectINSURANCE MARKETS
dc.subjectINTEREST RATE
dc.subjectINTERNATIONAL BANK
dc.subjectINVESTING
dc.subjectJOINT LIABILITY
dc.subjectLABOR MARKETS
dc.subjectLATE PAYMENTS
dc.subjectLEGAL PROCEEDINGS
dc.subjectLEGAL REFORM
dc.subjectLENDER
dc.subjectLENDERS
dc.subjectLIMITED ACCESS
dc.subjectLIQUID ASSETS
dc.subjectLOAN
dc.subjectLOAN AMOUNT
dc.subjectLOAN APPLICANTS
dc.subjectLOAN APPLICATION
dc.subjectLOAN APPLICATIONS
dc.subjectLOAN APPROVAL
dc.subjectLOAN CONTRACTS
dc.subjectLOAN CUSTOMERS
dc.subjectLOAN DECISIONS
dc.subjectLOAN MARKETS
dc.subjectLOAN MATURITY
dc.subjectLOAN OFFICER
dc.subjectLOAN OFFICERS
dc.subjectLOAN POOL
dc.subjectLOAN REPAYMENT
dc.subjectLOAN REPAYMENTS
dc.subjectLOAN SIZE
dc.subjectLOAN SIZES
dc.subjectLOAN TERMS
dc.subjectMACROECONOMICS
dc.subjectMARKET INFORMATION
dc.subjectMARKET VALUE
dc.subjectMATURITY DATE
dc.subjectMICRO DATA
dc.subjectMICROCREDIT
dc.subjectMICROFINANCE
dc.subjectMICROFINANCE INSTITUTION
dc.subjectMORAL HAZARD
dc.subjectNATIONAL CREDIT
dc.subjectOUTSTANDING BALANCE
dc.subjectOUTSTANDING BALANCES
dc.subjectPERSONAL BANKRUPTCIES
dc.subjectPOLITICAL ECONOMY
dc.subjectPOSITIVE EFFECTS
dc.subjectPOTENTIAL BORROWERS
dc.subjectPRINCIPAL AGENT MODEL
dc.subjectPRIVATE CREDIT
dc.subjectPROBABILITY OF DEFAULT
dc.subjectPROBABILITY OF REPAYMENT
dc.subjectPRODUCTION INPUTS
dc.subjectPRODUCTIVE INVESTMENT
dc.subjectPROFITABILITY
dc.subjectPROSPECTIVE BORROWERS
dc.subjectPUBLIC POLICY
dc.subjectREPAYMENT
dc.subjectREPAYMENT INCENTIVES
dc.subjectREPAYMENT PERFORMANCE
dc.subjectREPAYMENT RATE
dc.subjectREPAYMENT RATES
dc.subjectREPAYMENTS
dc.subjectREPUDIATION
dc.subjectRISK SHARING
dc.subjectRURAL CREDIT
dc.subjectRURAL CREDIT MARKETS
dc.subjectRURAL FINANCE
dc.subjectRURAL FINANCIAL MARKETS
dc.subjectSAVINGS
dc.subjectSAVINGS ACCOUNT
dc.subjectSAVINGS PRODUCT
dc.subjectSMALLHOLDER
dc.subjectSMALLHOLDER FARMERS
dc.subjectSUPPLIER
dc.subjectSUPPLY OF CREDIT
dc.subjectTRANSACTION
dc.subjectTRANSACTION COSTS
dc.subjectTURNOVER
dc.subjectURBAN AREAS
dc.subjectVILLAGE
dc.subjectVILLAGES
dc.titleIdentification Strategy : A Field Experiment on Dynamic Incentives in Rural Credit Marketsen
dspace.entity.typePublication
okr.crossref.titleIdentification strategy : a field experiment on dynamic incentives in rural credit markets
okr.date.disclosure2010-10-01
okr.date.doiregistration2025-04-10T11:40:47.687753Z
okr.doctypePublications & Research::Policy Research Working Paper
okr.docurlhttp://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20101004091720
okr.guid817431468338938881
okr.identifier.doi10.1596/1813-9450-5438
okr.identifier.externaldocumentum000158349_20101004091720
okr.identifier.internaldocumentum12829199
okr.identifier.reportWPS5438
okr.language.supporteden
okr.pdfurlhttp://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2010/10/04/000158349_20101004091720/Rendered/PDF/WPS5438.pdfen
okr.region.administrativeThe World Region
okr.region.administrativeThe World Region
okr.unitDevelopment Research Group (DECRG)
okr.volume1 of 1
relation.isAuthorOfPublication460a3e9c-f7d0-5335-977a-578f6fc8ebe3
relation.isAuthorOfPublication.latestForDiscovery460a3e9c-f7d0-5335-977a-578f6fc8ebe3
relation.isSeriesOfPublication26e071dc-b0bf-409c-b982-df2970295c87
relation.isSeriesOfPublication.latestForDiscovery26e071dc-b0bf-409c-b982-df2970295c87
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