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on Microfinance |
| By: | Megan Lang; Alpha Ly |
| Abstract: | Even as governments push to build infrastructure to achieve universal access to electricity, demand-side barriers constrain uptake where infrastructure already exists. This paper assesses the impact of the quasi-experimental introduction of mobile money on electricity adoption by households. We conduct a granular district-level analysis of 33 sub-Saharan African countries that leverages differential sub-national mobile network coverage. We find that mobile money access improves district-level power uptake by around 24% relative to similar districts without mobile money access. We provide evidence consistent with demand-side channels, specifically reduced financial frictions, driving this relationship as opposed to supply-side infrastructure expansion. Furthermore, we highlight the enabling role of mobile network coverage and the detrimental impact of mobile money taxes on electrification efforts. |
| Keywords: | mobile money, financial inclusion, electrification, demand-side factors |
| JEL: | O16 O33 Q40 |
| Date: | 2026 |
| URL: | https://d.repec.org/n?u=RePEc:ces:ceswps:_12921 |
| By: | Besley, Tim; Burchardi, Konrad; Ghatak, Maitreesh; Xu, Linchuan |
| Abstract: | Expanding access to credit markets can be seen as a source of empowerment when it increases economic opportunities and changes who is able to start a new business. It can also have equilibrium effects on wages so that the gains from financial development are widely shared. But others see credit market expansion as an unwelcome process of `financialization' with many of the gains being appropriated by financial institutions, pointing to the concentration in ownership of financial intermediaries, especially banks, around the world. This paper explores these issues, investigating the consequences of financial sector expansion for profits, wages and entrepreneurial activity using a calibrated general equilibrium model with financial frictions, endogenous default, and wealth inequality. A key element of the model is to examine how the surplus created in the real economy by expanding financial markets is shared between borrowers, lenders, and workers employed by firms. We show that competition in banking can be an important determinant of both equity and efficiency, and hence the gains from financial inclusion. The framework also highlights the role that different types of contractual imperfections can play in determining the distribution of gains from expanding market access. |
| Date: | 2024–07 |
| URL: | https://d.repec.org/n?u=RePEc:cpr:ceprdp:19225 |
| By: | Erik Berwart; Sean K. Higgins; Sheisha Kulkarni; Santiago Truffa |
| Abstract: | How do biased beliefs about the interest rate distribution affect search, negotiation, and loan terms in consumer credit markets? In collaboration with Chile's financial regulator, we conducted a randomized controlled trial with 112, 063 loan seekers. Randomly eliciting beliefs about interest rates led participants to search more and obtain lower rates. Most participants underestimated both interest rate levels and dispersion. Showing them a price comparison tool we built using administrative data on the universe of consumer loans caused them to update their beliefs, negotiate more, obtain lower rates without searching more, and be more likely to take out a loan. |
| JEL: | D14 D18 D83 G51 |
| Date: | 2026–08 |
| URL: | https://d.repec.org/n?u=RePEc:nbr:nberwo:35605 |