Table 13 Endogeneity check: regressions for the three risk classes
From: Fintech platforms: Lax or careful borrowers’ screening?
(1) A-B | (2) C-D | (3) E-F-G | |
|---|---|---|---|
Verification process | 0.0408*** (0.0123) | 0.0353** (0.0141) | 0.0394*** (0.00796) |
Term | 0.601*** (0.0148) | 0.549*** (0.0167) | 0.532*** (0.00814) |
Interest rate | 18.60*** (0.271) | 3.236*** (0.269) | 7.754*** (0.166) |
ln (annual income) | − 0.140*** (0.0103) | − 0.240*** (0.0147) | − 0.164*** (0.00776) |
Loan purpose: debt consolidation | 0.0391** (0.0175) | 0.120*** (0.0204) | 0.108*** (0.0116) |
Loan purpose: credit card | 0.0493*** (0.0188) | 0.0514* (0.0286) | 0.102*** (0.0139) |
Loan purpose: home improvement | 0.0822*** (0.0255) | 0.0596* (0.0347) | 0.118*** (0.0190) |
Loan purpose: small business | 0.662*** (0.0524) | 0.283*** (0.0452) | 0.370*** (0.0333) |
Home mortaged | − 0.340*** (0.0113) | − 0.349*** (0.0155) | − 0.345*** (0.00839) |
Home owned | − 0.127*** (0.0173) | − 0.215*** (0.0241) | − 0.197*** (0.0129) |
year | 0.350*** (0.0103) | 0.193*** (0.0190) | 0.272*** (0.00762) |
3-digit zip | Yes | Yes | Yes |
Constant | − 3.078*** (0.120) | 0.579*** (0.167) | − 1.276*** (0.0887) |
Observations | 429,448 | 87,932 | 394,827 |