The Incentive Effect of Scores: Randomized Evidence from Credit Committees

Preprint OPEN
Daniel Paravisini; Antoinette Schoar;
(2013)
  • Subject:
    • jel: jel:G21 | jel:D23 | jel:O33 | jel:L23
    mesheuropmc: education | humanities | health care economics and organizations
    acm: ComputingMilieux_MISCELLANEOUS

We design a randomized controlled trial to evaluate the adoption of credit scoring with a bank that uses soft information in small businesses lending. We find that credit scores improve the productivity of credit committees, reduce managerial involvement in the loan app... View more
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