We provide microeconomic evidence on ethnic frictions and market efficiency, using dyadic data on managers and borrowers from a large Indian bank. We conjecture that, if exposure to religion-based communal violence intensifies intergroup animosity, riot exposure will lead to lending decisions that are more sensitive to a borrower’s religion. We find that riot-exposed Hindu branch managers lend relatively less to Muslim borrowers and that these loans are less likely to default, consistent with riot exposure exacerbating taste-based discrimination. This bias is persistent across a bank officer’s tenure, suggesting that the economic costs of ethnic conflict are long-lasting, potentially spanning across generations.

中文翻译：

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社区冲突和集团间借贷的经验

我们使用来自一家大型印度银行的经理和借款人的二元数据，提供关于种族摩擦和市场效率的微观经济证据。我们推测，如果暴露于基于宗教的社区暴力加剧了群体间的敌意，暴乱暴露将导致贷款决策对借款人的宗教更为敏感。我们发现，暴乱暴露的印度教分支机构经理向穆斯林借款人提供的贷款相对较少，而且这些贷款违约的可能性较小，这与暴乱暴露加剧了基于品味的歧视相一致。这种偏见在银行高管的任期内持续存在，这表明种族冲突的经济成本是持久的，可能跨越几代人。