IDEAS home Printed from https://ideas.repec.org/a/ecr/col070/42661.html

Who borrows to accumulate assets? Class, gender and indebtedness in Ecuador’s credit market

Author

Listed:
  • Catanzarite, Zachary B.
  • Deere, Carmen Diana

Abstract

This article examines the propositions that wealth inequality supports credit market segmentation and that the financial system may reproduce economic inequality. Specifically, we discuss how the sources of credit and the purposes of borrowing may help perpetuate inequality. In Ecuador, the asset-poor are more likely than the asset-rich to borrow from the informal sector for expense purposes and to have higher debt-to-net-wealth ratios. We also investigate the correlates of borrowing by men and women to acquire assets and show that the main factor associated with holding asset debt for both men and women is having a formal savings account.

Suggested Citation

  • Catanzarite, Zachary B. & Deere, Carmen Diana, 2017. "Who borrows to accumulate assets? Class, gender and indebtedness in Ecuador’s credit market," Revista CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), August.
    • Handle: RePEc:ecr:col070:42661
    as

    Download full text from publisher

    File URL: http://repositorio.cepal.org/handle/11362/42661
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Barham, Bradford L. & Boucher, Stephen & Carter, Michael R., 1996. "Credit constraints, credit unions, and small-scale producers in Guatemala," World Development, Elsevier, vol. 24(5), pages 793-806, May.
    2. Daryl Collins, 2008. "Debt and household finance: evidence from the Financial Diaries," Development Southern Africa, Taylor & Francis Journals, vol. 25(4), pages 469-479.
    3. Davies, James B. (ed.), 2008. "Personal Wealth from a Global Perspective," OUP Catalogue, Oxford University Press, number 9780199548897.
    4. Abhijit V. Banerjee & Esther Duflo, 2010. "Giving Credit Where It Is Due," Journal of Economic Perspectives, American Economic Association, vol. 24(3), pages 61-80, Summer.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Alessandro Bucciol & Martina Manfre' & Gregorio Gimenez, 2019. "Household Financial Decisions After the 2008 Chilean Pension Reform," Working Papers 10/2019, University of Verona, Department of Economics.
    2. Álvarez-Gamboa, Javier & Cabrera-Barona, Pablo & Jácome-Estrella, Hugo, 2023. "Territorial inequalities in financial inclusion: A comparative study between private banks and credit unions," Socio-Economic Planning Sciences, Elsevier, vol. 87(PA).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Marat Ibragimov & Rustam Ibragimov, 2018. "Heavy tails and upper-tail inequality: The case of Russia," Empirical Economics, Springer, vol. 54(2), pages 823-837, March.
    2. Leonard, David K. & Bloom, Gerald & Hanson, Kara & O’Farrell, Juan & Spicer, Neil, 2013. "Institutional Solutions to the Asymmetric Information Problem in Health and Development Services for the Poor," World Development, Elsevier, vol. 48(C), pages 71-87.
    3. Islam, Asadul & Nguyen, Chau & Smyth, Russell, 2015. "Does microfinance change informal lending in village economies? Evidence from Bangladesh," Journal of Banking & Finance, Elsevier, vol. 50(C), pages 141-156.
    4. Berriel, Tiago Couto & Zilberman, Eduardo, 2011. "Targeting the poor: a macroeconomic analysis of cash transfer programs," FGV EPGE Economics Working Papers (Ensaios Economicos da EPGE) 726, EPGE Brazilian School of Economics and Finance - FGV EPGE (Brazil).
    5. Doss, Cheryl R. & Catanzarite, Zachary & Baah-Boateng, William & Swaminathan, Hema & Diana Deere, Carmen & Boakye-Yiadom, Louis & Suchitra, J.Y., 2018. "Do men and women estimate property values differently?," World Development, Elsevier, vol. 107(C), pages 75-86.
    6. Tiago Cavalcanti & Bruno Martins & Cezar Santos & Joseph Kaboski, 2018. "Dispersion in Financing Costs and Development," 2018 Meeting Papers 426, Society for Economic Dynamics.
    7. Bardhan, Pranab & Luca, Michael & Mookherjee, Dilip & Pino, Francisco, 2014. "Evolution of land distribution in West Bengal 1967–2004: Role of land reform and demographic changes," Journal of Development Economics, Elsevier, vol. 110(C), pages 171-190.
    8. Stéphane J. Baele, 2013. "The ethics of New Development Economics: is the Experimental Approach to Development Economics morally wrong?," The Journal of Philosophical Economics, Bucharest Academy of Economic Studies, The Journal of Philosophical Economics, vol. 7(1), November.
    9. Anubhab Gupta & Heng Zhu & Miki Khanh Doan & Aleksandr Michuda & Binoy Majumder, 2021. "Economic Impacts of the COVID−19 Lockdown in a Remittance‐Dependent Region," American Journal of Agricultural Economics, John Wiley & Sons, vol. 103(2), pages 466-485, March.
    10. Aswini Kumar Mishra & Vedant Bhardwaj, 2021. "Wealth distribution and accounting for changes in wealth inequality: empirical evidence from India, 1991–2012," Economic Change and Restructuring, Springer, vol. 54(2), pages 585-620, May.
    11. Malte Luebker, 2014. "Income Inequality, Redistribution, and Poverty: Contrasting Rational Choice and Behavioral Perspectives," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 60(1), pages 133-154, March.
    12. Sophie Webber, 2015. "Randomising Development: Geography, Economics and the Search for Scientific Rigour," Tijdschrift voor Economische en Sociale Geografie, Royal Dutch Geographical Society KNAG, vol. 106(1), pages 36-52, February.
    13. Dufhues, Thomas & Buchenrieder, Gertrud, 2005. "Outreach of credit institutes and households' access constraints to formal credit in Northern Vietnam," Research in Development Economics and Policy (Discussion Paper Series) 8535, Universitaet Hohenheim, Department of Agricultural Economics and Social Sciences in the Tropics and Subtropics.
    14. Richard M. Bird, 2018. "Are global taxes feasible?," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 25(5), pages 1372-1400, October.
    15. Jonathan Haughton & Shahidur R. Khandker & Pungpond Rukumnuaykit, 2014. "Microcredit on a Large Scale: Appraising the Thailand Village Fund," Asian Economic Journal, East Asian Economic Association, vol. 28(4), pages 363-388, December.
    16. Khanna, Madhulika & Majumdar, Shruti, 2020. "Caste-ing wider nets of credit: A mixed methods analysis of informal lending and caste relations in Bihar," World Development Perspectives, Elsevier, vol. 20(C).
    17. Nixon Kagutha Njue & Esther Wangithi Waiganjo & John M. Kihoro, 2016. "Influence of Coaching as a Leadership Development Practice on the Performance of Microfinance Institutions in Kenya," International Journal of Academic Research in Business and Social Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Business and Social Sciences, vol. 6(10), pages 206-217, October.
    18. Ankur TUTLANI, 2016. "Effective Cost of Borrowing from Microfinance Institutions," Journal of Economics Bibliography, KSP Journals, vol. 3(1), pages 134-147, March.
    19. Hochguertel, Stefan & Ohlsson, Henry, 2012. "Who is at the top? Wealth mobility over the life cycle," Working Paper Series, Center for Fiscal Studies 2012:1, Uppsala University, Department of Economics.
    20. Carter, Michael R. & Barham, Bradford L., 1996. "Level playing fields and laissez faire: Postliberal development strategy in inegalitarian agrarian economies," World Development, Elsevier, vol. 24(7), pages 1133-1149, July.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ecr:col070:42661. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Biblioteca CEPAL (email available below). General contact details of provider: https://edirc.repec.org/data/eclaccl.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.