Seminar Abstract

【Stop blaming the victim : credit discrimination without moral hazard】

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Speaker: 佐々木 弾

Affiliation: 東京大学 社会科学研究所

Date and Time: 2003. 7. 24 (Thu), 4:30 - 6:00 p.m.

Place: 3F1136

Chair: 吉田あつし

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Abstract: 

Can a specific class of borrowers be treated 
discriminatorily even if (1) the class is identical with 
the remainder of the population in terms of theirability 
and their use of borrowed money, and also (2) lenders are 
rational andcompetitive? Unlike most of the existing 
statistical discrimination literature, theendogenous 
discrimination in this paper does not involve hidden 
actions which aredistinct between the 
discriminated-against and the discriminated-for. 

Thereby itis successfully shown that a discriminatory 
self-fulfilling prophecy can be endogenouslysustained even 
when the class of borrowers do nothing “blameworthy” 
tocontribute to such a prophecy.