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Lying About Borrowing

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Author Info
Dean Karlan
Jonathan Zinman
Abstract

We compare survey self-reports with administrative data and find that nearly 50% of recent borrowers do not report their high-interest consumer loans. Under-reporting appears to be correlated with several characteristics of interest, in particular gender: 62% of women interviewed by men underreport whereas 42% of women interviewed by women underreport. On the other hand, 40% of men underreport, irrespective of the gender of the interviewer. As such relying strictly on self-reported data may lead to biased inference, and we outline some methodological implications for identifying impacts of credit access on borrower behavior and outcomes. Matching female surveyors to female respondents appears to be a low-cost mitigating strategy, but clearly the best strategy is to make sure one has administrative data from a lender to measure actual borrowing history. (JEL: C81, D12, O12) (c) 2008 by the European Economic Association.

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File URL: http://www.mitpressjournals.org/doi/pdfplus/10.1162/JEEA.2008.6.2-3.510
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Article provided by MIT Press in its journal Journal of the European Economic Association.

Volume (Year): 6 (2008)
Issue (Month): 2-3 (04-05)
Pages: 510-521
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Handle: RePEc:tpr:jeurec:v:6:y:2008:i:2-3:p:510-521

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Find related papers by JEL classification:
C81 - Mathematical and Quantitative Methods - - Data Collection and Data Estimation Methodology; Computer Programs - - - Microeconomic Data
D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
O12 - Economic Development, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development

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This page was last updated on 2008-12-19.


This information is provided to you by IDEAS at the Department of Economics, College of Liberal Arts and Sciences, University of Connecticut using RePEc data on a server sponsored by the Society for Economic Dynamics.