We study theoretically and empirically the demand for micro-credit under different liability arrangements and risk environments. A simple theoretical model shows that the demand for joint-liability loans can exceed that for individual-liability loans when risk-averse borrowers value their...

We study theoretically and empirically the demand for microcredit under different liability arrangements and risk environments. A theoretical model shows that the demand for joint-liability loans can exceed that for individual-liability loans when risk-averse borrowers value their long-term...

We examine how the numeracy level of employees influences the quality of their on-the-job decisions. Based on an administrative dataset of a retail bank we relate the performance of loan officers in a standardized math test to the accuracy of their credit assessments of small business borrowers....

This supplemental appendix extends the main paper by presenting an additional analysis of a math training implemented by the bank. We do not find evidence for a significant influence of the math training on loan officers' rejection decisions and accuracy. These findings suggest that the...