Consumer Surplus with Incomplete Markets

• Tác giả: John Ashton Loeser
• Ngôn ngữ: eng
• Ký hiệu phân loại: 640.7 Education, research, related topics; evaluation and purchasing guides
• Thông tin xuất bản: World Bank, Washington, DC, 2023
• Bộ sưu tập: Tài liệu truy cập mở
• ID: 316190
• Chủ đề: 1. CONSUMER SURPLUS; 2. FINANCIAL INCLUSION; 3. HOUSEHOLD WELFARE GAINS; 4. INCOMPLETE FINANCIAL MARKETS

Tóm tắt

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.