nep-mfd New Economics Papers
on Microfinance
Issue of 2020‒11‒30
two papers chosen by
Aastha Pudasainee and Olivier Dagnelie

  1. Does Lasting Behavior Change Require Knowledge Change? Evidence From Savings Interventions For Young Adults By Samantha Horn; Julian Jamison; Dean Karlan; Jonathan Zinman
  2. The Regulation of Prosocial Lending: Are Loan Ceilings Effective? By Anastasia Cozarenco; Ariane Szafarz

  1. By: Samantha Horn; Julian Jamison; Dean Karlan; Jonathan Zinman
    Abstract: Is financial knowledge change necessary for lasting savings behavior change? Or, akin to the canonical Friedman billiards player, can behavior persist “as if” such knowledge is held? We randomize 240 Ugandan young-adult clubs to financial education, savings account access, both, or neither. Each education arm, but not the account-only arm, increases financial knowledge and trust in banks at one-year. But at five-years the knowledge effects disappear, and the trust effects diminish. Savings activity, wealth, and income increase at both one-year and five-years for all treatment arms, suggesting that knowledge change is unnecessary for lasting impacts on behavior and outcomes.
    JEL: D12 D91 O12
    Date: 2020–10
  2. By: Anastasia Cozarenco; Ariane Szafarz
    Keywords: Microcredit; microfinance; regulation; loan ceiling; mission drift; altruism
    JEL: G21 L51 G28 O52 L31 I38 C25 M13
    Date: 2020–11–10

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