Labeled loans and human capital investments

Arbeitspapier

Imperfect capital markets and commitment problems impede lumpy human capital investments. Labeled loans have been postulated as a potential solution to both constraints, but little is known about the role of the label in influencing investment choices in practice. We draw on a cluster randomized controlled trial in rural India to test predictions from a theoretical model, providing novel evidence that labeled microcredit is effective in influencing household borrowing and investment decisions and increasing take-up of a lumpy human capital investment, a toilet.

Angaben zum Objekt

• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Series: IFS Working Papers ; No. 23/05

Klassifikation und Themen

• Klassifikation: Wirtschaft ; Economic Development: Financial Markets; Saving and Capital Investment; Corporate Finance and Governance ; Household Saving; Personal Finance ; Behavioral Finance: Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making in Financial Markets‡ ; Personal Income and Other Nonbusiness Taxes and Subsidies; includes inheritance and gift taxes ; Health Behavior ; Welfare, Well-Being, and Poverty: Government Programs; Provision and Effects of Welfare Programs
• Thema: credit constraints ; microcredit ; labels ; commitment device ; fungibility ; sanitation ; subsidies

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): Augsburg, Britta ; Caeyers, Bet ; Giunti, Sara ; Malde, Bansi ; Smets, Susanna
• Ereignis: Veröffentlichung
• (wer): Institute for Fiscal Studies (IFS)
• (wo): London
• (wann): 2023

Weitere Informationen

• DOI: doi:10.1920/wp.ifs.2023.0523
• Handle: http://hdl.handle.net/10419/284231
• Letzte Aktualisierung: 10.03.2025, 11:43 MEZ