Rural Women's Access to Credit: Market Imperfections and Intrahousehold Dynamics
Summary Credit rationing studies carried out at the household level and based on responses from male heads of households present an incomplete and biased assessment of who is likely to be constrained, why they are constrained, and what is the extent of the constraints. They ignore possibly conflictive intrahousehold dynamics and assume that imperfections in rural financial markets are gender-neutral. This paper addresses both issues theoretically and empirically. The Semi-Cooperative Household model developed for this analysis formalizes the conditions under which spouses', and particularly women's, individual access to credit can be affected by their own position in the financial market as well as by intrahousehold dynamics. These notions are then explored empirically using husbands' and wives' individual perceptions of their access to credit in rural Paraguay. The most significant empirical findings of the paper are that (i) compared to men, women are more likely to be credit constrained; (ii) women's rationing status responds to a different set of factors than men's; and (iii) husbands may choose not to intermediate capital to their wives even when they are able to do so. Results from this exercise provide empirically sound support for the assumptions underlying women-targeted credit programs.
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Besley, Timothy, 1995.
"Savings, credit and insurance,"
Handbook of Development Economics,
in: Hollis Chenery & T.N. Srinivasan (ed.), Handbook of Development Economics, edition 1, volume 3, chapter 36, pages 2123-2207
- Tauchen, Helen V & Witte, Ann Dryden & Long, Sharon K, 1991. "Domestic Violence: A Nonrandom Affair," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 32(2), pages 491-511, May.
- Mark M. Pitt & Shahidur R. Khandker, 1998. "The Impact of Group-Based Credit Programs on Poor Households in Bangladesh: Does the Gender of Participants Matter?," Journal of Political Economy, University of Chicago Press, vol. 106(5), pages 958-996, October.
- Mark M. Pitt & Shahidur R. Khandker & Omar Haider Chowdhury & Daniel L. Millimet, 1998. "Credit Programs for the Poor and the Nutritional Status of Children in Rural Bangladesh," Working Papers 98-4, Brown University, Department of Economics, revised 16 Jan 1998.
- Boucher, Stephen R. & Guirkinger, Catherine & Trivelli, Carolina, 2006. "Direct Elicitation of Credit Constraints: Conceptual and Practical Issues with an Empirical Application to Peruvian Agriculture," Working Papers 6883, University of California, Davis, Department of Agricultural and Resource Economics.
- Lundberg, Shelly & Pollak, Robert A, 1993.
"Separate Spheres Bargaining and the Marriage Market,"
Journal of Political Economy,
University of Chicago Press, vol. 101(6), pages 988-1010, December.
- Lundberg, S. & Pollak, R.A., 1991. "Separate Spheres Bargaining and the Marriage Market," Working Papers 91-08, University of Washington, Department of Economics.
- Lundberg, S. & Pollak, R.A., 1991. "Separate Spheres Bargaining and the Marriage Market," Discussion Papers in Economics at the University of Washington 91-08, Department of Economics at the University of Washington.
- Diana Fletschner, 2008. "Women's Access to Credit: Does It Matter for Household Efficiency?," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 90(3), pages 669-683.
- Jappelli, Tullio, 1990. "Who Is Credit Constrained in the U.S. Economy?," The Quarterly Journal of Economics, MIT Press, vol. 105(1), pages 219-34, February.
- Diagne, Aliou & Zeller, Manfred, 2001. "Access to credit and its impact on welfare in Malawi:," Research reports 116, International Food Policy Research Institute (IFPRI).
- 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.
- Martin Petrick, 2005.
"Empirical measurement of credit rationing in agriculture: a methodological survey,"
International Association of Agricultural Economists, vol. 33(2), pages 191-203, 09.
- Petrick, Martin, 2003. "Empirical measurement of credit rationing in agriculture: a methodological survey," IAMO Discussion Papers 45, Leibniz Institute of Agricultural Development in Central and Eastern Europe (IAMO).
- Fletschner, Diana & Carter, Michael R., 2008. "Constructing and reconstructing gender: Reference group effects and women's demand for entrepreneurial capital," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 37(2), pages 672-693, April.
- Zeller, Manfred, 1994. "Determinants of credit rationing: A study of informal lenders and formal credit groups in Madagascar," World Development, Elsevier, vol. 22(12), pages 1895-1907, December.
- Mark M. Pitt & Shahidur R. Khandker & Omar Haider Chowdhury & Daniel L. Millimet, 2003. "Credit Programs for the Poor And the Health Status of Children in Rural Bangladesh," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 44(1), pages 87-118, February.
- Udry, Christopher, 1996. "Gender, Agricultural Production, and the Theory of the Household," Journal of Political Economy, University of Chicago Press, vol. 104(5), pages 1010-46, October.
- Baydas, Mayada M. & Meyer, Richard L. & Aguilera-Alfred, Nelson, 1994. "Discrimination against women in formal credit markets: Reality or rhetoric?," World Development, Elsevier, vol. 22(7), pages 1073-1082, July.
When requesting a correction, please mention this item's handle: RePEc:eee:wdevel:v:37:y:2009:i:3:p:618-631. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei)
If references are entirely missing, you can add them using this form.