nep-mfd New Economics Papers
on Microfinance
Issue of 2017‒12‒03
two papers chosen by
Aastha Pudasainee and Olivier Dagnelie

  1. Considering the Effects of Mobile Phones on Financial Inclusion in Cambodia By Seng, Kimty
  2. Risk Sharing and the Demand for Insurance: Theory and Experimental Evidence from Ethiopia By Erlend Berg; Michael Blake; Karlijn Morsink

  1. By: Seng, Kimty
    Abstract: This paper examines the effects of mobile phones on financial inclusion in terms of households’ uptake of microcredit in Cambodia, with data from the Cambodia Socio-Economic Survey conducted in 2014. The analysis is conducted with a propensity score matching approach to address endogeneity issues of the use of mobile phones and to evaluate the effects. The results suggest that mobile phones are very likely to induce households to take up credit offered by microfinance institutions, in particular for non-agricultural investment purpose, but to discourage households from using credit for non-productive purpose.
    Keywords: Mobile phones, financial inclusion, microfinance, Cambodia
    JEL: O10 O12
    Date: 2017–10–27
  2. By: Erlend Berg; Michael Blake; Karlijn Morsink
    Abstract: Households, organisations and governments commonly engage in risk sharing. The residual risk, however, is often considerable. In response, many policy makers consider the introduction of parametric or index insurance. This raises the question of how demand for insurance depends on the extent of pre-existing risk sharing. We contribute to the literature in two ways. First, we present a simple model to analyse demand for both standard indemnity insurance and index insurance in the presence of risk sharing. Second, we conduct an artefactual field experiment with Ethiopian farmers, in which the predictions of the theoretical framework are borne out.
    Keywords: risk sharing; indemnity insurance; index insurance
    JEL: D14 D81 G22 O16
    Date: 2017

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