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Giving Credit Where it is Due

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  • Banerjee, Abhijit
  • Duflo, Esther

Abstract

This paper shows how the productive interplay of theory and experimental work has furthered our understanding of credit markets in developing countries. Descriptive facts motivated a body of theory, which in turned motivated experiments designed to test it. Results from these experiments reveal both the success and the limits of the theory, prompting new work to refine it. We argue that the literature on credit can be a template research in other domains.

Suggested Citation

  • Banerjee, Abhijit & Duflo, Esther, 2010. "Giving Credit Where it is Due," CEPR Discussion Papers 7754, C.E.P.R. Discussion Papers.
    • Handle: RePEc:cpr:ceprdp:7754
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    More about this item

    Keywords

    Credit markets; Field experiments;

    JEL classification:

    • C93 - Mathematical and Quantitative Methods - - Design of Experiments - - - Field Experiments
    • O16 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance

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