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Productivity Shocks and Repayment Behavior in Rural Credit Markets : A Framed Field Experiment (英语)

Improving rural credit markets requires a good understanding of the root causes of market failures and taking necessary steps to address them. This paper investigates the role of productivity shocks in borrower’s repayment choices. Using a framed field experiment that simulated a repeated interaction in an input credit market, the analysis finds strong evidence that adverse productivity shocks lead to higher default, even when they do not induce negative...
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