Productivity Shocks and Repayment Behavior in Rural Credit Markets: A Framed Field Experiment

doi:10.1080/00220388.2019.1640873

Publication:
Productivity Shocks and Repayment Behavior in Rural Credit Markets: A Framed Field Experiment

dc.contributor.author	Adjognon, Guigonan Serge
dc.contributor.author	Liverpool-Tasie, Lenis Saweda
dc.contributor.author	Shupp, Robert
dc.date.accessioned	2021-03-17T16:46:25Z
dc.date.available	2021-03-17T16:46:25Z
dc.date.issued	2020-10
dc.description.abstract	Improving rural credit markets requires a good understanding of the root causes of market failures and taking necessary steps to address them. This paper investigates the role of productivity shocks in borrowers repayment choices. Using a framed field experiment that simulated a repeated interaction in an input credit market, the analysis finds strong evidence that adverse productivity shocks lead to higher default, even when they do not induce negative returns. This relationship is robust to the presence of an information exchange system enforcing dynamic incentives. The findings suggest that recurrent shocks such as those resulting from the harmful effects of climate change could exacerbate failures in rural credit markets, undermining hard-won progress toward rural financial inclusion.	en
dc.identifier.citation	The Journal of Development Studies
dc.identifier.doi	10.1596/35278
dc.identifier.issn	0022-0388
dc.identifier.uri	https://hdl.handle.net/10986/35278
dc.publisher	Taylor and Francis
dc.rights	CC BY-NC-ND 3.0 IGO
dc.rights.holder	World Bank
dc.rights.uri	http://creativecommons.org/licenses/by-nc-nd/3.0/igo
dc.subject	CREDIT
dc.subject	AGRICULTURE
dc.subject	FINANCIAL INCLUSION
dc.subject	RURAL
dc.subject	RURAL CREDIT MARKET
dc.title	Productivity Shocks and Repayment Behavior in Rural Credit Markets	en
dc.title.subtitle	A Framed Field Experiment	en
dc.type	Journal Article	en
dc.type	Article de journal	fr
dc.type	Artículo de revista	es
dspace.entity.type	Publication
okr.associatedcontent	https://www.tandfonline.com/doi/full/10.1080/00220388.2019.1640873 Journal website (version of record)	en
okr.associatedcontent	https://openknowledge.worldbank.org/handle/10986/30001 Working paper version (pre-print)	en
okr.date.disclosure	2021-03-17
okr.date.doiregistration	2025-05-06T11:06:24.920287Z
okr.doctype	Publications & Research::Journal Article
okr.doctype	Publications & Research
okr.externalcontent	External Content
okr.guid	387081617091541206
okr.identifier.doi	10.1080/00220388.2019.1640873
okr.identifier.report	157789
okr.journal.nbpages	1902-26
okr.language.supported	en
okr.peerreview	Academic Peer Review
okr.topic	Finance and Financial Sector Development::Access to Finance
okr.topic	Finance and Financial Sector Development::Rural Finance
okr.unit	DIME, DECRG
okr.volume	56(10)