Replication data for: Cultural Proximity and Loan Outcomes
- Fisman, Raymond
- Paravisini, Daniel
- Vig, Vikrant
AbstractWe present evidence that cultural proximity (shared codes, beliefs, ethnicity) between lenders and borrowers increases the quantity of credit and reduces default. We identify in-group lending using dyadic data on religion and caste for officers and borrowers from an Indian bank, and a rotation policy that induces exogenous matching between them. Having an in-group officer increases credit access and loan size dispersion, reduces collateral requirements, and induces better repayment even after the in-group officer leaves. We consider a range of explanations and suggest that the findings are most easily explained by cultural proximity serving to mitigate information frictions in lending.
Is supplement to
DOI: 10.1257/aer.20120942 (Text)
Fisman, Raymond, Daniel Paravisini, and Vikrant Vig. “Cultural Proximity and Loan Outcomes.” American Economic Review 107, no. 2 (February 2017): 457–92. https://doi.org/10.1257/aer.20120942.
- ID: 10.1257/aer.20120942 (DOI)
Update Metadata: 2020-05-18 | Issue Number: 2 | Registration Date: 2019-10-12