The Aggregate Impact of Household Saving and Borrowing Constraints: Designing a Field Experiment in Uganda

Joseph Kaboski, Molly Lipscomb and Virgiliu Midrigan

American Economic Review, 2014, vol. 104, issue 5, 171-76

Abstract: We develop a model of households with multiple needs (smoothing shocks, financing investment) and constraints (limited credit, self-control issues) in order to examine the nature of household's financing constraints in a developing country, and the impact of relaxing them. We show that increased access to credit has very different implications for the aggregate model economy depending on its form: asset-financed or cash. We then illustrate how a short-term increase in access to loans leads to very distinct behavior in the short run. The relevance of the model can be evaluated using a field experiment, which we are currently implementing in Uganda.

JEL-codes: C93 D14 O12 O16 (search for similar items in EconPapers)
Date: 2014
Note: DOI: 10.1257/aer.104.5.171
References: Add references at CitEc
Citations: View citations in EconPapers (8)

Downloads: (external link)
http://www.aeaweb.org/articles.php?doi=10.1257/aer.104.5.171 (application/pdf)
http://www.aeaweb.org/aer/app/10405/P2014_1119_app.pdf (application/pdf)
http://www.aeaweb.org/aer/data/10405/P2014_1119_data.zip (application/zip)
http://www.aeaweb.org/aer/ds/10405/P2014_1119_ds.zip (application/zip)
Access to full text is restricted to AEA members and institutional subscribers.

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:aea:aecrev:v:104:y:2014:i:5:p:171-76

Ordering information: This journal article can be ordered from
https://www.aeaweb.org/journals/subscriptions

Access Statistics for this article

American Economic Review is currently edited by Esther Duflo

More articles in American Economic Review from American Economic Association Contact information at EDIRC.
Bibliographic data for series maintained by Michael P. Albert ().