Plausibly Exogenous [675] - Advantageous Selection (11/24/2021)
LHS Variable
Default rates
RHS Variable
Loan amount
Source of Exogenous Variation
Comparison of observationally equivalent households who borrow $35,000 before and after the increase in the loan limit in the platform
- Pelosi (2021), “Advantageous Selection in Fintech Loans”