Labeled loans and human capital investments

Augsburg, Britta, Caeyers, Bet, Giunti, Sara, Malde, Bansi, Smets, Susanna (2023) Labeled loans and human capital investments. Journal of Development Economics, 162 . Article Number 103053. ISSN 0304-3878. (doi:10.1016/j.jdeveco.2023.103053) (KAR id:99760)

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Official URL: https://doi.org/10.1016/j.jdeveco.2023.103053

Abstract

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.

Item Type:	Article
DOI/Identification number:	10.1016/j.jdeveco.2023.103053
Additional information:	For the purpose of open access, the author has applied a CC BY public copyright licence (where permitted by UKRI, an Open Government Licence or CC BY ND public copyright licence may be used instead) to any Author Accepted Manuscript version arising
Uncontrolled keywords:	Credit constraints; Microcredit; Labels; Commitment device; Fungibility; Sanitation; Subsidies
Subjects:	H Social Sciences H Social Sciences > HB Economic Theory H Social Sciences > HC Economic History and Conditions
Divisions:	Divisions > Division of Human and Social Sciences > School of Economics
Funders:	Economic and Social Research Council (https://ror.org/03n0ht308)
Depositing User:	Bansi Malde
Date Deposited:	30 Jan 2023 10:08 UTC
Last Modified:	15 Mar 2023 15:12 UTC
Resource URI:	https://kar.kent.ac.uk/id/eprint/99760 (The current URI for this page, for reference purposes)
Malde, Bansi:	https://orcid.org/0000-0003-1323-3383

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