Travail de recherche/Working paper
| Résumé : | Outcome tests for discrimination in the credit market typically assume that profit is the lender’s goal. This assumption ignores nonprofit and social lending institutions that value prosocial outcomes. These institutions may combine positive and negative discrimination, further complicating the identification of bias. We propose a test for discrimination in lending that is robust to the profit orientation of the lender. Consistent with the Basel framework for credit risk management, our test is based on recovery records. It is applicable to the identification of both positive and negative bias. |
