Arbeitspapier
Access to credit: Awareness and use of formal and informal credit institutions
In this paper we study the determinants of use of formal and informal credit sources. Given that awareness is a necessary step towards use of credit, in order to control for the possible selection bias we decompose the decision to use credit as a two stage decision process in which first, households form their choice set by deciding which type of institutions they want to consider as possible lenders (awareness), and then choose among them (use). Additionally, we allow for correlation between being aware of a specific source of credit and using it. We find evidence that supports the hypothesis that the formal and informal credit markets in Mexico attend different segments of the population. However, our results also show that informal lending sources' characteristics are valued per-se by consumers in certain situations, such as emergencies.
- Language
-
Englisch
- Bibliographic citation
-
Series: Working Papers ; No. 2013-07
- Classification
-
Wirtschaft
Household Saving; Personal Finance
- Subject
-
credit demand
consideration set
informal credit
formal credit
Mexico
- Event
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Geistige Schöpfung
- (who)
-
Campero, Alejandra
Kaiser, Karen
- Event
-
Veröffentlichung
- (who)
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Banco de México
- (where)
-
Ciudad de México
- (when)
-
2013
- Handle
- Last update
-
10.03.2025, 11:42 AM CET
Data provider
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Campero, Alejandra
- Kaiser, Karen
- Banco de México
Time of origin
- 2013
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Tax collection, the informal sector, and productivity
Informal sector misallocation
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Bank credit allocation and sectorial concentration in Mexico: Some empirical evidence
The effect of bank credit and the trade patterns of Colombian exporters
Financial frictions in Mexico: Evidence from the credit spread and its components
Valuation of credit default swaps via Bessel bridges
The informal sector in contemporary models of the aggregate economy
Are information disclosure mandates effective? Evidence from the credit card market
El salario mínimo en los sectores formal e informal: Evidencia derivada de un choque inflacionario en Colombia
Informal labor markets in times of pandemic: Evidence for Latin America and policy options
Bank credit and productivity: Evidence from Mexican firms
Tax collection, the informal sector, and productivity
Informal sector misallocation
The role of credit on the evolution of wealth inequality in the USA
Bank credit allocation and sectorial concentration in Mexico: Some empirical evidence
The effect of bank credit and the trade patterns of Colombian exporters
Financial frictions in Mexico: Evidence from the credit spread and its components
Valuation of credit default swaps via Bessel bridges
The informal sector in contemporary models of the aggregate economy
Are information disclosure mandates effective? Evidence from the credit card market
El salario mínimo en los sectores formal e informal: Evidencia derivada de un choque inflacionario en Colombia