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Keywords:Algorithmic decision-making 

Working Paper
Technological Innovation and Discrimination in Household Finance

Technology has changed how discrimination manifests itself in financial services. Replacing human discretion with algorithms in decision-making roles reduces taste-based discrimination, and new modeling techniques have expanded access to financial services to households who were previously excluded from these markets. However, algorithms can exhibit bias from human involvement in the development process, and their opacity and complexity can facilitate statistical discrimination inconsistent with antidiscrimination laws in several aspects of financial services provision, including advertising, ...
Finance and Economics Discussion Series , Paper 2020-018

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