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on Microfinance |
| By: | Markus K. Brunnermeier; Nicola Limodio; Lorenzo Spadavecchia |
| Abstract: | This paper investigates the tradeoff between competition and financial inclusion resulting from the vertical integration between mobile network and money operators. Joining newly assembled data on mobile money fees through the WayBack machine, with sources on network coverage and financials, we examine the staggering across African operators and countries of platform interoperability – a policy that promotes transactions and competition across mobile money operators. Our results show that interoperability benefits users by lowering mobile money fees and their dispersion across operators. However, these positive effects are offset by a decrease in mobile towers and network coverage, especially in rural and poor districts, which, in turn, leads to a lower financial inclusion. We note that combining interoperability with subsidies for rural telecommunications delivers lower fees without hurting coverage. |
| JEL: | E4 O16 O30 |
| Date: | 2023–09 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:31696&r=mfd |
| By: | Bogliacino, Francesco (Universidad Nacional de Colombia); Posso, Christian M; Villaveces, Juanita |
| Abstract: | We estimate the causal effect of the Law mandating land restitution to victims of forced displacement in Colombia. We use the timing of the restitution as the source of identification in an event study approach. Farmers typically rely on small to medium-sized loans with limited or no collateral to finance their investments, thus we employ microcredit as our main outcome variable. We analyze administrative data from the program, along with data from the census of credit transactions. Our findings reveal a substantial increase in access to credit, both in terms of the likelihood of signing a loan (extensive margin) and the loan amounts (intensive margin). These effects are most pronounced two years after land restitution, coinciding with the moment individuals gain full property rights. By delving into the specific details of these credit transactions, we ascertain that the credits obtained are primarily directed towards agricultural investments. This suggests that the increased access to credit is likely being used to finance material investments in the restored land parcels. |
| Date: | 2023–09–21 |
| URL: | http://d.repec.org/n?u=RePEc:osf:socarx:ch6mk&r=mfd |
| By: | Cruces, Guillermo |
| Abstract: | Cash transfer and other social protection programs in developing countries have often been accompanied by measures to foster financial inclusion, such as the adoption and use of bank accounts and electronic means of payments. Argentina's social benefits are paid in bank accounts and accessed through debit cards. With the simultaneous objective of fostering formality among beneficiaries and stores, the use of debit cards for purchases has been incentivized by means of additional subsidies. We studied the low take-up of these extra benefits by means of a field experiment involving 400, 000 beneficiaries of Argentinas largest conditional cash-transfer program (with 2.2 million beneficiaries who are the parents of four million children, 40% of the countrys 0-17-year olds). By using their debit card to spend the allowance, rather than withdrawing cash from ATMs, they can receive a rebate of 15% of their expenditures. However, they systematically fail to claim this benefit: only about 25% of beneficiaries receive this transfer. Our experiment provided information about the effectiveness of an information campaign conducted via text messages or through on-screen messages at ATM machines. The campaign increased purchases with debit cards and subsequent rebates significantly but not substantially in the short run. However, beneficiaries who increased their use of debit cards do not exhibit a higher probability of having access to credit through the financial system, nor higher levels of formal employment. The results indicate that cultural factors (a preference for cash), administrative hassle and citizen security issues are relevant issues that limit the potential of financial inclusion through increased use of digital means of payment. |
| Keywords: | Take-up of social benefits;financial inclusion |
| JEL: | C93 H26 K34 K42 Z13 |
| Date: | 2023–08 |
| URL: | http://d.repec.org/n?u=RePEc:idb:brikps:13034&r=mfd |
| By: | Imène Berguiga; Philippe Adair |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:eru:erudwp:wp23-06&r=mfd |