Selection into Credit Markets: Evidence from Agriculture in Mali /
We examine whether returns to capital are higher for farmers who borrow than for those who do not, a direct implication of many credit market models. We measure the difference in returns through a two-stage loan and grant experiment. We find large positive investment responses and returns to grants...
Gespeichert in:
- Weitere Titel:
- Self-Selection into Credit Markets
- 1. Verfasser:
- Körperschaft:
- Weitere Verfasser:
- , ,
- Format:
- Elektronisch E-Book
- Sprache:
- Englisch
- Veröffentlicht:
-
Cambridge, Mass.
National Bureau of Economic Research
2014.
- Zusammenfassung:
-
We examine whether returns to capital are higher for farmers who borrow than for those who do not, a direct implication of many credit market models. We measure the difference in returns through a two-stage loan and grant experiment. We find large positive investment responses and returns to grants for a random (representative) sample of farmers, showing that liquidity constraints bind. However, we find zero returns to grants for a sample of farmers who endogenously did not borrow. Thus we find important heterogeneity, even conditional on a wide range of observed characteristics, which has critical implications for theory and policy.
- Umfang:
- 1 online resource: illustrations (black and white);
- Anmerkungen:
- August 2014.
- Schlagworte:
-