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The Impact of Microfinance on Pro-Social Behaviors: Experimental Evidence of Public Goods Contributions in Uganda

Author

Listed:
  • Bryan McCannon

    (West Virginia University, Department of Economics)

  • Zachary Rodriguez

    (Saint Bonaventure University, School of Business)

Abstract

We ask whether access to microfinance loans by the poor has a spillover effect on their pro†social behaviors. An experimental field study in southern, rural Uganda is conducted using free riding in public goods contributions as an assessment. We document higher levels of contributions by those who have previously received a microloan. This effect cannot be explained by changes in social norms, income effects, or sample selection bias. The results suggest that exposure to microfinance promotes social preferences.

Suggested Citation

  • Bryan McCannon & Zachary Rodriguez, 2016. "The Impact of Microfinance on Pro-Social Behaviors: Experimental Evidence of Public Goods Contributions in Uganda," Working Papers 16-13, Department of Economics, West Virginia University.
    • Handle: RePEc:wvu:wpaper:16-13
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    File URL: http://busecon.wvu.edu/phd_economics/pdf/16-13.pdf
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    Cited by:

    1. Drouvelis, Michalis & Marx, Benjamin M., 2018. "Prosociality spillovers of working with others," Journal of Economic Behavior & Organization, Elsevier, vol. 155(C), pages 205-216.
    2. Bryan McCannon & Zachary Rodriguez, 2016. "A Lasting Effect of the HIV/AIDS Pandemic: Orphans and Pro-Social Behavior," Working Papers 16-10, Department of Economics, West Virginia University.

    More about this item

    Keywords

    experiment; field study; free riding; microfinance; public goods; social norm; social preference; Uganda;
    All these keywords.

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