DP7754 Giving Credit Where it is Due

Author(s): Abhijit Banerjee, Esther Duflo
Publication Date: March 2010
Keyword(s): credit markets, field experiments
JEL(s): C93, O16
Programme Areas: Development Economics
Link to this Page: cepr.org/active/publications/discussion_papers/dp.php?dpno=7754

This paper shows how the productive interplay of theory and experimental work has furthered our understanding of credit markets in developing countries. Descriptive facts motivated a body of theory, which in turned motivated experiments designed to test it. Results from these experiments reveal both the success and the limits of the theory, prompting new work to refine it. We argue that the literature on credit can be a template research in other domains.