| 来源类型 | Discussion paper |
| 规范类型 | 论文 |
| 来源ID | DP13329 |
| DP13329 Repayment Flexibility and Risk Taking: Experimental Evidence from Credit Contracts | |
| Marianna Battaglia; Selim Gulesci; Andreas Madestam | |
| 发表日期 | 2022-05-27 |
| 出版年 | 2022 |
| 语种 | 英语 |
| 摘要 | A widely-held view is that small firms in developing countries are prevented from making profitable investments by lack of access to credit and insurance markets. One solution is to provide repayment flexibility in credit contracts. Repayment flexibility eases both the credit constraint, as it allows for increased spending during the startup phase, and offers insurance, in case of fluctuations in income. In a field experiment among microcredit borrowers in Bangladesh, we randomly assign the option to delay up to 2 monthly repayments at any point during a 12-month loan cycle. The flexible contract leads to substantial (0.2 standard deviation) improvements in business outcomes and socioeconomic status, combined with lower default rates. The results are driven by an increase in entrepreneurial risk taking, implying that the primary mechanism is insurance provision. Repayment flexibility also attracts less risk-averse borrowers interested in business expansion. Our findings suggest that lack of insurance is an important constraint for small firms but that a simple financial product that increases repayment flexibility can be an effective tool for enabling enterprise growth. |
| 主题 | Development Economics |
| 关键词 | Repayment flexibility Insurance Credit Microfinance entrepreneurship |
| URL | https://cepr.org/publications/dp13329-0 |
| 来源智库 | Centre for Economic Policy Research (United Kingdom) |
| 资源类型 | 智库出版物 |
| 条目标识符 | http://119.78.100.153/handle/2XGU8XDN/546367 |
| 推荐引用方式 GB/T 7714 | Marianna Battaglia,Selim Gulesci,Andreas Madestam. DP13329 Repayment Flexibility and Risk Taking: Experimental Evidence from Credit Contracts. 2022. |
| 条目包含的文件 | 条目无相关文件。 | |||||
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