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Paper improved personal identification from malawi

6 important questions on Paper improved personal identification from malawi

What was the main problem that led to this paper

That in lending situations there was identity theft. there were good vs bad borrowers

What is the effect of fingerprinting on borrowers

Fingerprinted borrowers:
took out smaller loans
higher repayment levels
higher profits and results

Where were the strongest effects felt?

Among worst borrowers

What happened to adverse selection after fingerprinting

Adverse selection decreased which resulted in smaller loan sizes

What are the short term results of fingerprinting

Credibility of borrower increased and so did the ability to select a good borrower

Mention some shortomings of this paper

The treatment and control group are not balanced.

Furthermore the authors decide to inform the clients about the experimental intervention before they enter into the borrowing agreement. However they seem to think this is a positive thing, it could actually influence the borrower’s decision whether or not to still participate/change the amount they decide to loan