Weather Variability, Credit Scores and Access to Credit: Evidence from Colombian Coffee Farmers

Nicolás de Roux

No 17800, Documentos CEDE from Universidad de los Andes, Facultad de Economía, CEDE

Abstract: This paper studies how weather variability affects credit scores and credit access in developing countries. Using rich administrative data on loans to coffee farmers from a large Colombian bank, I show that negative weather shocks lead to lower loan repayment, lower credit scores and more frequent denials of future loan applications. I present evidence that affected farmer's income and ability to repay recover more quickly from weather shocks than credit access. Therefore, the interplay of weather variability and credit scores can lead to the exclusion from credit markets of farmers who could repay a loan.

Keywords: Weather Shocks; Credit Scores; Access to Credit; Coffee. (search for similar items in EconPapers)
JEL-codes: G21 O12 O13 Q12 Q14 Q18 Q54 (search for similar items in EconPapers)
Pages: 47
Date: 2020-01-20
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

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Persistent link: https://EconPapers.repec.org/RePEc:col:000089:017800

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