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Stupendous Household Finance program @ #NBERSI!
https://abs.twimg.com/emoji/v2/... draggable="false" alt="đđŸ" title="Applaus-Zeichen (durchschnittlich dunkler Hautton)" aria-label="Emoji: Applaus-Zeichen (durchschnittlich dunkler Hautton)"> @stroebel_econ+Morse+Zeldes for bringing top-notch papers PLUS vital discussion on the issues of our day.
Zingales did not disappoint. Hastings dropped some wisdom. Highlight for me was @mhnickie on discrimination in lending. https://twitter.com/stroebel_econ/status/1283753496886616065">https://twitter.com/stroebel_...
Zingales did not disappoint. Hastings dropped some wisdom. Highlight for me was @mhnickie on discrimination in lending. https://twitter.com/stroebel_econ/status/1283753496886616065">https://twitter.com/stroebel_...
Big-picture thoughts / takeaways on discrimination in consumer finance:
1. In the face of discrimination in the labor market, education, healthcare, criminal justice, ..., there may be some who think hh finance is not the most important area of concern.
Counterargument:
1. In the face of discrimination in the labor market, education, healthcare, criminal justice, ..., there may be some who think hh finance is not the most important area of concern.
Counterargument:
I just learned this fact recently https://abs.twimg.com/emoji/v2/... draggable="false" alt="đđŸ" title="RĂŒckhand Zeigefinger nach unten (durchschnittlich dunkler Hautton)" aria-label="Emoji: RĂŒckhand Zeigefinger nach unten (durchschnittlich dunkler Hautton)">https://abs.twimg.com/emoji/v2/... draggable="false" alt="đđŸ" title="RĂŒckhand Zeigefinger nach unten (durchschnittlich dunkler Hautton)" aria-label="Emoji: RĂŒckhand Zeigefinger nach unten (durchschnittlich dunkler Hautton)">. I just cannot get over it. https://twitter.com/jialanw/status/1269428315749781509">https://twitter.com/jialanw/s...
Recent work by @nomadj1s and coauthors show that controlling for wealth gaps completely closes the racial consumption smoothing gap -> MAYBE wealth-targeting policies could help address other disparities. https://twitter.com/nomadj1s/status/1252736155331821569">https://twitter.com/nomadj1s/...
I wonder about the interactions between wealth accumulation and gender disparities widely construed, as alluded to by @paulgp + Shue: https://twitter.com/paulgp/status/1280560337478209536">https://twitter.com/paulgp/st...
Sidenote: is it possible that @paulgp has not posted an official thread summarizing this paper? Could not find it. Anyhoo, now that I& #39;ve completely beaten a dead horse.
2. Back to the NBER HF session ... Paul made a really deep point about the role of markets.
2. Back to the NBER HF session ... Paul made a really deep point about the role of markets.
Competition does not automatically destroy racism!
REPEAT: COMPETITION DOES NOT AUTOMATICALLY DESTROY RACISM!
3. I diverge with market design as a promising solution. Caveat: fighting discrimination is a generational project. It will be hard + uncomfortable + we& #39;ll fail a lot
REPEAT: COMPETITION DOES NOT AUTOMATICALLY DESTROY RACISM!
3. I diverge with market design as a promising solution. Caveat: fighting discrimination is a generational project. It will be hard + uncomfortable + we& #39;ll fail a lot
I& #39;m totally on board with trying every possible approach to fighting discrimination: algorithms, anti-algorithms, law, competition, market design, younameit.
4. But given limited resources + legal limitations of the disparate treatment doctrine as described by Adair Morse ...
4. But given limited resources + legal limitations of the disparate treatment doctrine as described by Adair Morse ...
My gut feeling is that bringing in more market participants (banks, startups, lenders, loan officers, Fed Presidents, etc) who derive utility from ANTI-discrimination is something we can do now within our current legal framework. In other words, we need better representation.
Suggestive evidence from Fisman + Paravisini + Vig (AER 2017) that having a culturally-matched loan officer INCREASES credit supply and DECREASES defaults
https://pubs.aeaweb.org/doi/pdfplus/10.1257/aer.20120942">https://pubs.aeaweb.org/doi/pdfpl...
https://pubs.aeaweb.org/doi/pdfplus/10.1257/aer.20120942">https://pubs.aeaweb.org/doi/pdfpl...
We know from a large body of work beginning with Bertrand and Schoar (QJE 2003) that a manager& #39;s identity and personal experience meaningfully affects their decisions. https://academic.oup.com/qje/article-abstract/118/4/1169/1925095">https://academic.oup.com/qje/artic...
Magic Johnson is an amazing example of an entrepreneur who has made a lot of money and done a lot of good investing in underserved communities. There are not enough like him, and the market is not getting there on its own without visionary leaders. https://www.wsj.com/articles/magic-johnson-makes-another-assistto-the-small-business-aid-program-11589707801">https://www.wsj.com/articles/...
Ok, I guess that& #39;s all!
Stray thoughts:
- Cool idea from @jannspiess on "discrimination stress testing"
- @mhnickie dropped some wisdom + subject matter expertise on this topic - follow her!
Comparing magnitudes of loan officer race vs. algorithmic bias: exercise for readerhttps://abs.twimg.com/emoji/v2/... draggable="false" alt="đ" title="LĂ€chelndes Gesicht mit lĂ€chelnden Augen" aria-label="Emoji: LĂ€chelndes Gesicht mit lĂ€chelnden Augen">
Stray thoughts:
- Cool idea from @jannspiess on "discrimination stress testing"
- @mhnickie dropped some wisdom + subject matter expertise on this topic - follow her!
Comparing magnitudes of loan officer race vs. algorithmic bias: exercise for reader
" title="Ok, I guess that& #39;s all!Stray thoughts:- Cool idea from @jannspiess on "discrimination stress testing"- @mhnickie dropped some wisdom + subject matter expertise on this topic - follow her!Comparing magnitudes of loan officer race vs. algorithmic bias: exercise for reader https://abs.twimg.com/emoji/v2/... draggable="false" alt="đ" title="LĂ€chelndes Gesicht mit lĂ€chelnden Augen" aria-label="Emoji: LĂ€chelndes Gesicht mit lĂ€chelnden Augen">" class="img-responsive" style="max-width:100%;"/>
