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Consumption, Credit, and Institutions: Using Field Research and Theory to Consider Poverty Alleviation

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  • W. Parker Wheatley

Abstract

This paper discusses the role of social, institutional, and psychological factors in the consumption and borrowing behavior of low-income households, and makes arguments in favor of policy interventions to alleviate some of the challenges of these households. Focus group evidence and findings on the current behaviors and borrowing patterns of low-income families are provided to support and motivate this perspective on consumption and policy. While the data are drawn from a specific region, the observations and findings could be generalized to other communities after accounting for different cultural and social characteristics. This research provides an in-depth understanding of the challenges confronted by low-income individuals at achieving their economic desires for lives of basic dignity, explores both economic and non-economic motivations, and provides insights useful for policy deliberation and model development.

Suggested Citation

  • W. Parker Wheatley, 2014. "Consumption, Credit, and Institutions: Using Field Research and Theory to Consider Poverty Alleviation," Forum for Social Economics, Taylor & Francis Journals, vol. 43(1), pages 57-96, April.
    • Handle: RePEc:taf:fosoec:v:43:y:2014:i:1:p:57-96
    DOI: 10.1080/07360932.2012.732018
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    References listed on IDEAS

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    1. Mark J. Flannery & Katherine A. Samolyk, 2005. "Payday lending: do the costs justify the price?," Proceedings 949, Federal Reserve Bank of Chicago.
    2. Rae, John, 1834. "Statement of Some New Principles on the Subject of Political Economy," History of Economic Thought Books, McMaster University Archive for the History of Economic Thought, number rae1834.
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