Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/83717
Authors: 
Campero, Alejandra
Kaiser, Karen
Year of Publication: 
2013
Series/Report no.: 
Working Papers, Banco de México 2013-07
Abstract: 
In this paper we study the determinants of use of formal and informal credit sources. Given that awareness is a necessary step towards use of credit, in order to control for the possible selection bias we decompose the decision to use credit as a two stage decision process in which first, households form their choice set by deciding which type of institutions they want to consider as possible lenders (awareness), and then choose among them (use). Additionally, we allow for correlation between being aware of a specific source of credit and using it. We find evidence that supports the hypothesis that the formal and informal credit markets in Mexico attend different segments of the population. However, our results also show that informal lending sources' characteristics are valued per-se by consumers in certain situations, such as emergencies.
Subjects: 
credit demand
consideration set
informal credit
formal credit
Mexico
JEL: 
D1
D14
G2
Document Type: 
Working Paper
Appears in Collections:

Files in This Item:
File
Size
318.09 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.