El mercado de crédito en México

Victor Gerardo Carreón Rodríguez () and Malena Svarch Pérez
Additional contact information
Victor Gerardo Carreón Rodríguez: Division of Economics, CIDE

No DTE 392, Working Papers from CIDE, División de Economía

Abstract: The individual behavior in the credit market has been poorly studied for the Mexican Economy. We do not know about the mechanism used to solve liquidity restrictions. We neither know the suppliers that provide more credits. It is important to identify whether individuals use the credit market to invest in human capital or in response to negative income shocks. Moreover, it is important to characterize the credit market in order to find the average borrowed amount, the set of suppliers, the cost for each one (interest rate), and how frequently it is used. Using the Mexican Family Live Survey 2002 (MXFLS-2002), we find that people living in rural communities and in the southern part of the country have the lower participation rates in the credit market. Also, agents have little knowledge about the credit market. We also learn they know better the informal sources that the formal ones. We show that savings and loans cooperatives are the most frequently used source in the formal market, while in the formal market the most used source is the 'fiado' (sell on credit in the informal market). On the other hand, debt levels and interest rates are negatively correlated. Women have lower debt in the informal market and men have the lower debt in the formal one. Finally, by using a model that controls by selection problems, we find that schooling, household assets and low interest rates have a positive impact on the participation rate in the credit market.

Keywords: credit market; Mexican Economy; liquidity restrictions (search for similar items in EconPapers)
JEL-codes: E43 E51 (search for similar items in EconPapers)
Pages: 30 pages
Date: 2007-06
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.economiamexicana.cide.edu/RePEc/emc/pdf/DTE/DTE392.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:emc:wpaper:dte392

Access Statistics for this paper

More papers in Working Papers from CIDE, División de Economía Contact information at EDIRC.
Bibliographic data for series maintained by Mateo Hoyos ().