Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/284231 
Year of Publication: 
2023
Series/Report no.: 
IFS Working Papers No. 23/05
Publisher: 
Institute for Fiscal Studies (IFS), London
Abstract: 
Imperfect capital markets and commitment problems impede lumpy human capital investments. Labeled loans have been postulated as a potential solution to both constraints, but little is known about the role of the label in influencing investment choices in practice. We draw on a cluster randomized controlled trial in rural India to test predictions from a theoretical model, providing novel evidence that labeled microcredit is effective in influencing household borrowing and investment decisions and increasing take-up of a lumpy human capital investment, a toilet.
Subjects: 
credit constraints
microcredit
labels
commitment device
fungibility
sanitation
subsidies
JEL: 
O16
D14
G41
H24
I12
I38
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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