Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/162942
Authors: 
Brown, Martin
Kirschenmann, Karolin
Spycher, Thomas
Year of Publication: 
2017
Series/Report no.: 
ZEW Discussion Papers 17-026
Abstract: 
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. We find that loan officers with a high level of numeracy are more accurate in assessing the credit risk of borrowers. The effect is most pronounced during the pre-crisis credit boom period when it is arguably more difficult to pick out risky borrowers.
Subjects: 
behavioral banking
numeracy
loan officers
screening
JEL: 
G21
J24
Persistent Identifier of the first edition: 
Document Type: 
Working Paper
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