Experience of Communal Conflicts and Intergroup Lending

• 成果类型: Article
• 署名作者: Fisman, Raymond; Sarkar, Arkodipta; Skrastins, Janis; Vig, Vikrant
• 署名单位: Boston University; Hong Kong University of Science & Technology; Washington University (WUSTL); University of London; London Business School
• 刊物名称: JOURNAL OF POLITICAL ECONOMY
• ISSN/ISSBN: 0022-3808
• DOI: 10.1086/708856
• 发表日期: 2020
• 页码: 3346-3375
• 关键词: violence

摘要

We provide microeconomic evidence on ethnic frictions and market efficiency, using dyadic data on managers and borrowers from a large Indian bank. We conjecture that, if exposure to religion-based communal violence intensifies intergroup animosity, riot exposure will lead to lending decisions that are more sensitive to a borrower's religion. We find that riot-exposed Hindu branch managers lend relatively less to Muslim borrowers and that these loans are less likely to default, consistent with riot exposure exacerbating taste-based discrimination. This bias is persistent across a bank officer's tenure, suggesting that the economic costs of ethnic conflict are long-lasting, potentially spanning across generations.