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The Determinants of Access to Informal Credits in India: An Application of Quantiles via Moments Method

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  • Aswini Kumar Mishra

    (BITS, Pilani, K K Birla Goa Campus)

  • Vedant Bhardwaj

    (Universidad Carlos III de Madrid)

Abstract

The paper uses methods proposed by Machado and Silva (J Econom 213 (1): 145–173, 2019) to analyze the determinants or factors associated with informal credit access. The advantage of this approach is that it allows the use of methods that are only valid in the estimation of conditional means, while still providing information on how the regressors affect the entire conditional distribution. Our analysis shows how important it is to consider endogeneity as it is observed from the difference in the estimated value of the effect of rate of interest on credit availability.

Suggested Citation

  • Aswini Kumar Mishra & Vedant Bhardwaj, 2022. "The Determinants of Access to Informal Credits in India: An Application of Quantiles via Moments Method," Journal of Quantitative Economics, Springer;The Indian Econometric Society (TIES), vol. 20(1), pages 1-22, March.
    • Handle: RePEc:spr:jqecon:v:20:y:2022:i:1:d:10.1007_s40953-021-00255-x
    DOI: 10.1007/s40953-021-00255-x
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    More about this item

    Keywords

    Informal credit market; Institutional Arrangements; India;
    All these keywords.

    JEL classification:

    • D10 - Microeconomics - - Household Behavior - - - General
    • O17 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Formal and Informal Sectors; Shadow Economy; Institutional Arrangements
    • G20 - Financial Economics - - Financial Institutions and Services - - - General

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