Self-Selection into Credit Markets: Evidence from Agriculture in Mali
Lori Beaman,
Dean Karlan,
Bram Thuysbaert and
Christopher Udry
No 183318, Center Discussion Papers from Yale University, Economic Growth Center
Abstract:
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.
Keywords: Agricultural Finance; Farm Management; Financial Economics; International Development; Production Economics; Productivity Analysis (search for similar items in EconPapers)
Pages: 46
Date: 2014-05
References: View complete reference list from CitEc
Citations: View citations in EconPapers (22)
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https://ageconsearch.umn.edu/record/183318/files/cdp1042%20revised.pdf (application/pdf)
Related works:
Working Paper: Self-Selection into Credit Markets: Evidence from Agriculture in Mali (2014) 
Working Paper: Self-Selection into Credit Markets: Evidence from Agriculture in Mali (2014) 
Working Paper: Self-Selection into Credit Markets: Evidence from Agriculture in Mali (2014) 
Working Paper: Self-Selection into Credit Markets: Evidence from Agriculture in Mali (2014) 
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Persistent link: https://EconPapers.repec.org/RePEc:ags:yaleeg:183318
DOI: 10.22004/ag.econ.183318
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