Focusing effect and the poverty trap

Canidio, Andrea

doi:10.1016/j.euroecorev.2015.03.008

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2016

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Cited by 2 publications

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“…Our result that the rich lend to the poor is consistent with papers questioning the existence of technology‐based poverty traps (e.g. Kraay & McKenzie, ) and with theories of poverty based on behavioural biases (Banerjee & Mullainathan, ; Bernheim et al ., ; Canidio, ). Our evidence is also consistent with Beaman et al .…”

Section: Introductionmentioning

confidence: 98%

The Allocation of Capital in Rural Credit Markets

Burlando

Canidio

2016

J. Int. Dev.

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Understanding how capital flows within rural communities in sub-Saharan Africa can provide important insights on the nature of poverty and the effectiveness of financial intermediation. We use unique individual-level savings and borrowing data to study the flow of funds within a sample of 104 Ugandan savings groups. We show that poor households borrow from wealthier households, which implies that the marginal benefit of money is decreasing in wealth. Other individual characteristics do not predict the flow of funds within the group. We also fail to detect evidence that members are using savings groups to smooth out occupation-specific income shocks.

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Section: Introductionmentioning

confidence: 98%