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
Retos de las microfinanzas en Argentina: nueva evidencia empírica en base a encuestas al sector nacional
Lody M. Bueri,Diana E. Schvarztein,Ignacio Esteban Carballo +2 more
- 23 Oct 2019
TL;DR: In this article, the authors propose a tool of its own creation that is easily replicable (which expands and adjusts the well-known regional "Banana Skins" questionnaire) to analyze risks, threats and obstacles perceived by the local sector.
•Posted Content
The Impact of Consumer Credit Constraints on Earnings, Sorting, and Job Finding Rates of Displaced Workers
Gordon M. Phillips,Kyle Herkenhoff +1 more
- 01 Jan 2015
TL;DR: The authors studied the role of consumer credit access in the earnings losses of displaced workers, their job finding rates, and the subsequent quality of jobs they take, and found that credit constrained workers have earnings losses that are [X]% greater than unconstrained households.
The Role of Social Capital in Risk-Taking Decisions under Joint Liability Lending
TL;DR: In this paper, a possible explanation for the absence of risk-taking among small-holder borrowers in joint-liability group lending has been discussed, which has come under scrutiny for failure to promote profitable risk taking among smallholders in developing countries.
5
The Household Finance Landscape in Emerging Economies
Cristian Badarinza,Vimal Balasubramaniam,Vimal Balasubramaniam,Tarun Ramadorai,Tarun Ramadorai +4 more
TL;DR: In this article, the authors present statistics on household balance sheets from official microsurveys in countries constituting 45% of the global population: China, India, Bangladesh, Philippines, Thailand, and South Africa.
4
The Effects of Access to Credit on Productivity Among Microenterprises: Separating Technological Changes from Changes in Technical Efficiency
TL;DR: In this paper, the impact of access to credit on the overall productivity of rice farmers was investigated in a field experiment involving microenterprises in Bangladesh, and disentangle the total effect into technological change (frontier shift) and technical efficiency changes.
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.