Deposit collectors

Nava Ashraf*, Dean Karlan, Wesley Yin

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

28 Scopus citations

Abstract

Informal lending and savings institutions exist around the world, and often include regular door-to-door deposit collection of cash. Some banks have adopted similar services in order to expand access to banking services in areas that lack physical branches. Using a randomized control trial, we investigate determinants of participation in a deposit collection service and evaluate the impact of offering the service for micro-savers of a rural bank in the Philippines. Of 137 individuals offered the service in the treatment group, 38 agreed to sign-up, and 20 regularly used the service. Take-up is predicted by distance to the bank (a measure of transaction costs of depositing without the service) as well as being married (a suggestion that household bargaining issues are important). Those offered the service saved 188 pesos more (which equates to about a 25% increase in savings stock) and were slightly less likely to borrow from the bank.

Original languageEnglish (US)
Pages (from-to)121-144
Number of pages24
JournalAdvances in Economic Analysis and Policy
Volume6
Issue number2
StatePublished - Apr 4 2006

Keywords

  • Behavioral economics
  • Development economics
  • Microfinance
  • Microsavings
  • Time management

ASJC Scopus subject areas

  • Economics, Econometrics and Finance(all)

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