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Book
Year: 2023 Publisher: Washington, D.C. : World Bank,
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The household welfare gains from financial inclusion are empirically elusive. This paper establishes that household welfare gains from a financial technology are equal to the area under dynamically compensated demand in a household model with incomplete financial markets, and general technology, preferences, and choice sets. This paper then estimates compensated demand for financial technologies leveraging three randomized control trials that introduce experimental variation in interest rates. Welfare gains per dollar lent or saved are small as compensated demand elasticities are large, but still correspond to large aggregate welfare gains from financial inclusion.
Book
Year: 2019 Publisher: Washington, D.C. : The World Bank,
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This paper examines constraints to adoption of new technologies in the context of hillside irrigation schemes in Rwanda. It leverages a plot-level spatial regression discontinuity design to produce 3 key results. First, irrigation enables dry season horticultural production, which boosts on-farm cash profits by 70 percent. Second, adoption is constrained: access to irrigation causes farmers to substitute labor and inputs away from their other plots. Eliminating this substitution would increase adoption by at least 21 percent. Third, this substitution is largest for smaller households and wealthier households. This result can be explained by labor market failures in a standard agricultural household model.
Agricultural Sector Economics --- Agriculture --- Horticulture --- Irrigation --- Irrigation and Drainage --- Labor Market --- Labor Markets --- Market Failures --- Social Protections and Labor --- Technology Adoption --- Water Resources
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