Two Sides of the Same Rupee? Comparing Demand for Microcredit and Microsaving in a Framed Field Experiment in Rural Pakistan
Bibliographic Data
| ID | 9706166 |
|---|---|
| Authors | Uzma Afzal (0000-0002-2975-8240, Lahore School of Economics), Giovanna D’adda (0000-0002-2327-8481, Milan Politecnico), Marcel Fafchamps (0000-0001-5432-6223, Stanford University), Simon Quinn (0000-0002-5561-1306, University of Oxford), Farah Said (0000-0001-8807-8782, Lahore School of Economics) |
| Year | 2018 |
| Volume | 128 |
| Issue | 614 |
| Pages | 2161-2190 |
| Publication date | 2018-09-01 |
| Peer Reviewed | Yes |
| Open Access | Yes |
| Type | ARTICLE |
| Venue | The Economic Journal (JOURNAL) |
| Journal identifiers | ISSN: 0013-0133 • E-ISSN: 1468-0297 |
| Publisher | Oxford University Press (OUP) (PUBLISHER) |
| DOI | 10.1111/ecoj.12512 |
| OpenAlex | W2110041120 |
| Language | EN |
| Citations received | 11 |
| References cited | 38 |
We use a field experiment to test whether saving and borrowing satisfy demand for lump‐sum accumulation from regular deposits. Inspired by ROSCAs, we offer different credit and saving contracts to subjects. We find that individuals often accept both credit and saving contract across experimental waves. This behaviour can be rationalised by assuming that individuals seek lump‐sum payments and struggle to hold savings. Structural estimation of this model accounts for the behaviour of 75% of participants. Of these, two‐thirds have high demand for lump‐sum accumulation but savings difficulties. These results imply that the distinction between microlending and microsaving is largely illusory
Economic growth · Economics · Exchange rate · Field (mathematics · Lump sum · Microeconomics · Microfinance · Monetary economics · Payment · Rupee · Finance · Financial Literacy, Pension, Retirement Analysis · FinTech, Crowdfunding, Digital Finance · Mathematics · Microfinance and Financial Inclusion
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The economics of rotating savings and credit associations
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Rotating savings and credit associations
Roscas as financial agreements to cope with self-control problems
Self-Control at Work
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Facilitating Savings for Agriculture
| Unique citing works | 11 |
|---|---|
| Citations per year | 1 |
| Citation span | 2015 - 2026 (12) |
| Citation velocity | current |
| Highly cited | No |
| Citation types | Neutral: 11 |