IDEAS home Printed from https://ideas.repec.org/p/nbr/nberwo/17475.html
   My bibliography  Save this paper

List Randomization for Sensitive Behavior: An Application for Measuring Use of Loan Proceeds

Author

Listed:
  • Dean Karlan
  • Jonathan Zinman

Abstract

Policymakers and microfinance institutions (MFIs) often claim to target poor entrepreneurs who then invest loan proceeds in their businesses. Typically in nonresearch settings these claims are assessed using readily available but unverified self-reports from client loan applications. Alternatively, independent surveyors could directly elicit how borrowers spent their loan proceeds. That too, however, could suffer from deliberate misreporting. We use data from the Peru and the Philippines in which independent surveyors elicited loan use both directly (i.e., by asking how individuals spent their loan proceeds) and indirectly (i.e., through a list-randomization technique that allows individuals to hide their answer from the surveyor). We find that direct elicitation under-reports the non-enterprise uses of loan proceeds.

Suggested Citation

  • Dean Karlan & Jonathan Zinman, 2011. "List Randomization for Sensitive Behavior: An Application for Measuring Use of Loan Proceeds," NBER Working Papers 17475, National Bureau of Economic Research, Inc.
  • Handle: RePEc:nbr:nberwo:17475
    Note: LE
    as

    Download full text from publisher

    File URL: http://www.nber.org/papers/w17475.pdf
    Download Restriction: no

    Other versions of this item:

    References listed on IDEAS

    as
    1. Dean Karlan & Jonathan Zinman, 2008. "Lying About Borrowing," Journal of the European Economic Association, MIT Press, vol. 6(2-3), pages 510-521, 04-05.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Blattman, Christopher & Jamison, Julian & Koroknay-Palicz, Tricia & Rodrigues, Katherine & Sheridan, Margaret, 2016. "Measuring the measurement error: A method to qualitatively validate survey data," Journal of Development Economics, Elsevier, vol. 120(C), pages 99-112.
    2. Thorben C. Kundt & Florian Misch & Birger Nerré, 2017. "Re-assessing the merits of measuring tax evasion through business surveys: an application of the crosswise model," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 24(1), pages 112-133, February.
    3. Margaret Miller & Julia Reichelstein & Christian Salas & Bilal Zia, 2015. "Can You Help Someone Become Financially Capable? A Meta-Analysis of the Literature," World Bank Research Observer, World Bank Group, vol. 30(2), pages 220-246.
    4. Urquía-Grande, Elena & Rubio-Alcocer, Antonio, 2015. "Agricultural infrastructure donation performance: Empirical evidence in rural Ethiopia," Agricultural Water Management, Elsevier, vol. 158(C), pages 245-254.
    5. Katarzyna Cieslik & Marek Hudon & Philip Verwimp, 2015. "Unruly Entrepreneurs - Value Creation and Value Capture by Microfinance Clients in Rural Burundi," Working Papers CEB 15-013, ULB -- Universite Libre de Bruxelles.
    6. Karlan, Dean & Osman, Adam & Zinman, Jonathan, 2016. "Follow the money not the cash: Comparing methods for identifying consumption and investment responses to a liquidity shock," Journal of Development Economics, Elsevier, vol. 121(C), pages 11-23.
    7. Julian Jamison & Dean Karlan & Pia Raffler, 2013. "Mixed Method Evaluation of a Passive mHealth Sexual Information Testing Service in Uganda," Working Papers 1025, Economic Growth Center, Yale University.
    8. McKenzie D. & Siegel M., 2013. "Eliciting illegal migration rates through list randomization," MERIT Working Papers 023, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    9. Elisabetta de Cao & Clemens Lutz, 2015. "Measuring attitudes regarding female genital mutilation through a list experiment," CSAE Working Paper Series 2015-20, Centre for the Study of African Economies, University of Oxford.
    10. Gharad T. Bryan & James J. Choi & Dean Karlan, 2018. "Randomizing Religion: The Impact of Protestant Evangelism on Economic Outcomes," NBER Working Papers 24278, National Bureau of Economic Research, Inc.
    11. repec:dgr:rugsom:14017-eef is not listed on IDEAS
    12. repec:eee:matsoc:v:91:y:2018:i:c:p:17-24 is not listed on IDEAS
    13. Marianne Bertrand & Esther Duflo, 2016. "Field Experiments on Discrimination," NBER Working Papers 22014, National Bureau of Economic Research, Inc.
    14. Julian Jamison, Dean Karlan, Pia Raffler, 2013. "Mixed Method Evaluation of a Passive Health Sexual Information Texting Service in Uganda-Working Paper 332," Working Papers 332, Center for Global Development.
    15. TENIKUE Michel & TEQUAME Miron, 2018. "Economic and Health Impacts of the 2011 Post-Electoral Crisis in Côte d?Ivoire: Evidence from Microdata," LISER Working Paper Series 2018-03, LISER.
    16. Esther Atukunda & Anne Fitzpatrick, 2015. "An Evaluation of Factors Affecting Drug Quality: Evidence from the Antimalarial Market in Uganda," Working Papers 2015_03, University of Massachusetts Boston, Economics Department.
    17. Corno, Lucia & De Paula, Áureo, 2014. "Risky sexual behavior: biological markers and self-reported data," CEPR Discussion Papers 10271, C.E.P.R. Discussion Papers.
    18. Alberto Chong & Marco Gonzalez-Navarro & Dean Karlan & Martin Valdivia, 2013. "Do Information Technologies Improve Teenagers’ Sexual Education? Evidence from a Randomized Evaluation in Colombia," NBER Working Papers 18776, National Bureau of Economic Research, Inc.
    19. Römer, Ulf & Weber, Ron & Mußhoff, Oliver & Turvey, Calcum G., 2017. "Truth and consequences: Bogus pipeline experiment in informal small business lending," DARE Discussion Papers 1702, Georg-August University of Göttingen, Department of Agricultural Economics and Rural Development (DARE).
    20. Clarke, George, 2012. "Do reticent managers lie during firm surveys?," MPRA Paper 37634, University Library of Munich, Germany.
    21. Fafchamps, Marcel & McKenzie, David & Quinn, Simon & Woodruff, Christopher, 2014. "Microenterprise growth and the flypaper effect: Evidence from a randomized experiment in Ghana," Journal of Development Economics, Elsevier, vol. 106(C), pages 211-226.
    22. De Cao, Elisabetta & Lutz, Clemens, 2014. "Sensitive survey questions," Research Report 14017-EEF, University of Groningen, Research Institute SOM (Systems, Organisations and Management).
    23. repec:eee:soceco:v:74:y:2018:i:c:p:38-56 is not listed on IDEAS
    24. Pascaline Dupas & Edward Miguel, 2016. "Impacts and Determinants of Health Levels in Low-Income Countries," NBER Working Papers 22235, National Bureau of Economic Research, Inc.
    25. Kazushi Takahashi & Abu Shonchoy & Seiro Ito & Takashi Kurosaki, 2017. "How Does Contract Design Affect the Uptake of Microcredit among the Ultra-poor? Experimental Evidence from the River Islands of Northern Bangladesh," Journal of Development Studies, Taylor & Francis Journals, vol. 53(4), pages 530-547, April.

    More about this item

    JEL classification:

    • B4 - Schools of Economic Thought and Methodology - - Economic Methodology
    • D03 - Microeconomics - - General - - - Behavioral Microeconomics: Underlying Principles
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:nbr:nberwo:17475. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (). General contact details of provider: http://edirc.repec.org/data/nberrus.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.