Capital does not simply flow unimpeded to those who can make the best use of it. Banks need assurance that loans will be repaid. For that reason, they do not lend to those who are too poor to put up collateral. Although the poor may have excellent investment opportunities, they are often excluded from financial markets and unable to invest. There is considerable empirical support for the existe...

the study was designed to analyze credit receipt and enterprise performance by small scale agro based enterprises in the niger delta region of nigeria. a multistage sampling technique was adopted in selecting 264 agro based enterprises and 96 agro based enterprises that accessed informal and formal credit respectively. the heckman model was used to examine the factors affecting amount of inform...

Ethnic and racial disparities in mental health are driven by social factors such as housing, education, and income. Many of these social factors are different for minorities than they are for whites. Policies that address gaps in these social factors therefore can address mental health status disparities. We analyze three policies and their impact on minorities: the Individuals with Disability ...

The study was designed to analyze credit receipt and enterprise performance by small scale agro based enterprises in the Niger Delta region of Nigeria. A multistage sampling technique was adopted in selecting 264 agro based enterprises and 96 agro based enterprises that accessed informal and formal credit respectively. The Heckman model was used to examine the factors affecting amount of inform...

This paper studies the effects of interest rate restrictions on loan allocation. In 1714, the British government tightened the usury laws, reducing the maximum permissible interest rate from 6 to 5 percent. A sample of individual loan transactions from a goldsmith bank allows us to examine how interest rate restrictions affected loan allocation. Average loan size and minimum loan size increased...

This paper provides evidence that Social Security benefit claiming decisions are strongly affected by framing and are thus inconsistent with expected utility theory. Using a randomized experiment that controls for both observable and unobservable differences across individuals, we find that the use of a "breakeven analysis" encourages early claiming. Respondents are more likely to delay when la...

Bangladesh has gained substantial experience in using micro credit for reducing poverty since 1980s. NGOs first adopted micro credit approach basically to empower the women attempting at generating self employment and self reliance. The government followed the policy to achieve same objectives. NGOs and GOs have launched micro credit based programs to alleviate urban poverty, especially in the ...

This paper examines the nature of information asymmetry in online peer-to-peer (P2P) lending markets. These markets use the Internet to match individual borrowers and lenders of consumer loans without financial institutions as intermediaries. Like other anonymous interactions, P2P lending may face additional information asymmetry as compared to offline because P2P lenders have less access to “h...