A lot of parameters in one title, I know. So there's credit scoring but not using credit history. Then there's using a Bayesian logit model. Then there's doing so in a developing country such as Haiti or Peru.

Question: Does anyone know of any papers about psychometric or behavioural testing using Bayesian logit model to determine whether a loan applicant in a developing country would be creditworthy?

Background: How can psychometric or behavioural tests be used in banking to evaluate creditworthiness?

Something like they use psychological factors or questionnaires like in job interviews instead of financial factors such as financial ratios and then they have some methodology that reduces it to less factors then they make a regression model out of it or something but then they use Bayesian analysis or something there.

Edit: So far all I have found are Enterprising Psychometrics and Poverty Reduction

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and Technical Note – EFL Modeling Methodology.

Last part:

RESULTS Here we illustrate the improved performance from this
modeling approach, using data from one active EFL country.


Results from other countries show the same result: the EFL
Bayesian Hierarchical Model produces more accurate predictions and more stability out-of-sample.

Reading this has already earned much appreciation.

Answering or commenting will merit much more.

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