Publication: Credit Constraints and Fraud Victimization: Evidence from a Representative Chinese Household Survey
Date
2020-10
ISSN
Published
2020-10
Author(s)
Gao, Nan
Ma, Yuanyuan
Xu, Lixin Colin
Abstract
Using a novel, nationally representative
data set on fraud victimization, this paper examines the
impact of credit constraints on fraud victimization and
potential underlying mechanisms in Chinese urban areas.
After controlling for other household characteristics and
regional fixed effects, households facing credit constraints
are associated with 2.3 percentage points higher probability
of becoming fraud victims, and have 20.4 percent higher
subsequent economic losses from fraud when they are
approached. The results are robust when dealing with the
endogeneity of facing credit constraints and when addressing
potential sample selection bias. Further analyses show that
the personal discount rate (impatience) and the need for
social network expansion are critical pathways via which
credit constraints affect fraud victimization. The findings
suggest that improving financial development is an effective
way to reduce fraud victimization.
Citation
“Gao, Nan; Ma, Yuanyuan; Xu, Lixin Colin. 2020. Credit Constraints and Fraud Victimization: Evidence from a Representative Chinese Household Survey. Policy Research Working Paper;No. 9460. © World Bank, Washington, DC. http://hdl.handle.net/10986/34693 License: CC BY 3.0 IGO.”
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