Expanding Credit Access: Using Randomized Supply Decisions to Estimate the Impacts
Dean Karlan,Jonathan Zinman +1 more
TL;DR: In this article, the impacts of expanding access to consumer credit at a 200% annual percentage rate (APR) using a field experiment and follow-up data collection were investigated.
read more
Abstract: Expanding access to commercial credit is a key ingredient of financial development strategies. There is less consensus on whether expanding access to consumer credit helps borrowers, particularly when loans are extended at high interest rates. Popular skepticism about "unproductive," "usurious" lending is fueled by research highlighting behavioral biases that may induce overborrowing. We estimate the impacts of expanding access to consumer credit at a 200% annual percentage rate (APR) using a field experiment and follow-up data collection. The randomly assigned marginal loans produced significant net benefits for borrowers across a wide range of outcomes. There is also some evidence that the loans were profitable. The Author 2009. Published by Oxford University Press on behalf of The Society for Financial Studies. All rights reserved. For Permissions, please e-mail: journals.permissions@oxfordjournals.org, Oxford University Press.
read more
Chat with Paper
AI Agents for this Paper
Find similar papers on Google Scholar, PubMed and Arxiv
Write a critical review of this paper
Analyze citations of this paper to find unaddressed research gaps
Figures
Table 2 Experiment validity and compliance 
Table 1 Demographics 
Table 5 Treatment effects on credit bureau scores one and two years later Dependent variable: 1 = any ordinal 1 = any ordinal 
Table 3 Intention-to-treat effects on borrowing and access 
Table 6 Estimated profitability of marginal and inframarginal loans 
Table 4 Intention-to-treat estimates for summary index outcome measures
Citations
Motivating Migrants: A Field Experiment on Financial Decision-Making in Transnational Households
TL;DR: This article found that treated migrants and their wives became more likely to make joint decisions on money matters, and treated migrants became more willing to seek out financial education themselves, while spouses of treated migrants changed their financial practices.
Does digital finance promote household consumption upgrading? An analysis based on data from the China family panel studies
TL;DR: Wang et al. as mentioned in this paper examined the impact of digital financial development on Chinese household consumption structure and found that the development of digital finance promotes household consumption upgrading, which is implicative that the government should devote more efforts to developing digital finance to promote consumption upgrading and hence economic growth.
47
•Posted Content
Regulating New Banking Models that Can Bring Financial Services to All
TL;DR: In this paper, the authors highlight five areas where sharpened regulatory analysis would help strike a better balance between maximizing the opportunities of these models and containing risks: (i) branching regulations which distinguish between pure transactional outlets and full service bank branches; (ii) regulations which permit banks to engage third-party retail outlets with minimal financial risks for both banks and their customers; (iii) consumer protection regulations that help customers understand and act upon their rights in a more complex service delivery chain, without burdening banks with unnecessary provisions; (iv) tiered know-your-customer (
47
The Impacts of Credit on Village Economies
TL;DR: In this paper, the authors evaluate the short-term impact of Thailand's "Million Baht Village Fund" program, among the largest scale government micro-finance initiatives in the world, using pre-and post-program panel data and quasi-experimental cross-village variation in credit-per-household.
The Practicalities of Running Randomized Evaluations: Partnerships, Measurement, Ethics, and Transparency
R. Glennerster
- 01 Jan 2017
TL;DR: A number of critical innovations spurred the rapid expansion in the use of field experiments by academics as mentioned in this paper. But as researchers got more involved in the design and implementation of the interventions they tested, new ethical issues arose.
46
References
The CES-D Scale: A Self-Report Depression Scale for Research in the General Population
TL;DR: The CES-D scale as discussed by the authors is a short self-report scale designed to measure depressive symptomatology in the general population, which has been used in household interview surveys and in psychiatric settings.
Distinguishing optimism from neuroticism (and trait anxiety, self-mastery, and self-esteem): a reevaluation of the Life Orientation Test
TL;DR: Examination of the scale on somewhat different grounds, however, does suggest that future applications can benefit from its revision, and a minor modification to the Life Orientation Test is described, along with data bearing on the revised scale's psychometric properties.
6.9K
Financial development and economic growth : views and agenda
Ross Levine,Ross Levine +1 more
TL;DR: The authors argued that the preponderance of theoretical reasoning and empirical evidence suggests a positive first-order relationship between financial development and economic growth, and that financial development level is a good predictor of future rates of economic growth.
Occupational Choice and the Process of Development
TL;DR: In this paper, the authors model economic development as a process of institutional transformation by focusing on the interplay between agents' occupational decisions and the distribution of wealth, and demonstrate the robustness of this result by extending the model dynamically and studying examples in which initial wealth distributions have long-run effects.