Economics at your fingertips  

Mobile money and risk sharing against village shocks

Emma Riley

Journal of Development Economics, 2018, vol. 135, issue C, 43-58

Abstract: Households in developing countries have gained increased access to remittances through the recent introduction of mobile money services. I examine the impact of these mobile money services on consumption after a rainfall shock, such as a flood or drought, for both users of mobile money and for household that don't use mobile money but who reside in villages with other users. This allows me to determine the extent that remittances received via mobile money are shared within villages, creating wider benefits to the community. Using a difference-in-difference fixed effects specification, I find that after a village-level rainfall shock it is only users of mobile money who are able to prevent a drop in their consumption. There are no spillover effects to other members of the village. This finding has implications for how new technologies might change traditional risk sharing arrangements, and who might benefit and lose out from their spread.

Keywords: Risk sharing; Mobile money; Tanzania (search for similar items in EconPapers)
JEL-codes: O16 O17 O33 (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2) Track citations by RSS feed

Downloads: (external link)
Full text for ScienceDirect subscribers only

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:

Access Statistics for this article

Journal of Development Economics is currently edited by M. R. Rosenzweig

More articles in Journal of Development Economics from Elsevier
Bibliographic data for series maintained by Dana Niculescu ().

Page updated 2019-07-02
Handle: RePEc:eee:deveco:v:135:y:2018:i:c:p:43-58