Roads and Loans

Agarwal, Sumit; Mukherjee, Abhiroop; Naaraayanan, S Lakshmi

doi:10.2139/ssrn.3420546

Cited by 2 publications

(3 citation statements)

References 24 publications

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“…It is at first sight counter-intuitive that the main response to an improved physical connection to markets arguably providing better access to formal credit is an increase of borrowing specifically from moneylenders, to which households are commonly thought to appeal in times of distress, and not from any other source. These results are also at odds with Agarwal, Mukherjee, and Naaraayanan (2018), who find a large expansion of private bank loans when analyzing data from around 50 villages in Odisha and Uttarakhand.…”

Section: Credit Marketsmentioning

confidence: 60%

“…In this section, I explore what are the transformations in the village economy caused by roads that might lie behind the observed changes in social relations. I focus on labor and credit markets, since they have been shown in the literature (Asher and Novosad, 2020;Shamdasani, 2021;Agarwal, Mukherjee, and Naaraayanan, 2018) to be strongly affected by roads built under the PMGSY program, and IHDS contains particularly rich data on them. In addition, the position people assume in agricultural labor markets is not determined but often related to their caste, and the functioning of these markets is mediated by long-term arrangements, processes of collective negotiation, social norms and identity concerns (Drèze and Mukherjee, 1989;Breza, Kaur, and Krishnaswamy, 2019;Kaur, 2019;Oh, 2021).…”

Section: Mechanisms: Roads and The Village Economymentioning

confidence: 99%

“…Finally, this chapter aims to contribute to a better understanding of the impact of transport infrastructure investments, and in particular the rural roads built under the PMGSY program. PMGSY has been shown to promote transition to non-agricultural jobs (Asher and Novosad, 2020), to affect agricultural (Shamdasani, 2021) and educational investments (Adukia, Asher, and Novosad, 2020), to increase the number and size of private bank loans taken (Agarwal, Mukherjee, and Naaraayanan, 2018), as well as to lead to lower prices and increased availability of non-local goods (Aggarwal, 2018). However, the effects on social relations of this road construction program have remained unexplored so far.…”

Section: Introductionmentioning

confidence: 99%

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The Distribution of Development

Urzainqui¹

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The first two chapters in this dissertation deal with innovative methods that aim to further our understanding of social mobility and inequality in developing countries on the basis of commonly available data sources. Chapter 1 provides a comprehensive assessment of the adequacy of synthetic panel methods to deliver point estimates of poverty dynamics, and proposes an alternative estimator for a key intermediate parameter. Chapter 2 puts forward an imputation-based method that allows decomposing consumption inequality into their local and spatial components. This procedure is applied to the study of inequality dynamics in India over the first decade of this century. The third chapter takes advantage of a natural experiment to identify the causal impact of improved physical connection to markets on social relations in Indian villages. Improved access to markets leads to fewer social contacts and decreased cooperation within castes. While rural roads do not seem to generally improve relations between castes, they induce a decline in violent attacks, which is likely related to a reduction in casteist incidents.

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Section: Credit Marketsmentioning

confidence: 60%

Section: Mechanisms: Roads and The Village Economymentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

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The Distribution of Development

Urzainqui¹

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Branch Expansion versus Digital Banking: The Dynamics of Growth and Inequality in a Spatial Equilibrium Model

Teng

Townsend

2021

SSRN Journal

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We develop a heterogeneous-agent model with local spatial markets to study the relationships among bank expansion, growth, and inequality. In the model, households choose their occupations, consumption, and holdings of loans and portfolio assets that vary by liquidity. Banks choose the locations of new branches, which affect the financial frictions facing households across regions. We calibrate the model using a geographic information system to evaluate the rapid bank expansion in Thailand between 1986-1996. The model quantifies the sources of growth and inequality over time and across space and the potential role of digital banking in substantially reducing regional heterogeneity.

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Roads and Loans

Cited by 2 publications

References 24 publications

The Distribution of Development

The Distribution of Development

Branch Expansion versus Digital Banking: The Dynamics of Growth and Inequality in a Spatial Equilibrium Model

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