Cole, Shawn, Sampson, Thomas 
ORCID: 0009-0006-2237-5497 and Zia, Bilal
(2011)
Prices or knowledge?: what drives demand for financial services in emerging markets?
Journal of Finance, 66 (6).
pp. 1933-1967.
ISSN 0022-1082
Abstract
Financial development is critical for growth, but its microdeterminants are not well understood. We test leading theories of low demand for financial services in emerging markets, combining novel survey evidence from Indonesia and India with a field experiment. We find a strong correlation between financial literacy and behavior. However, a financial education program has modest effects, increasing demand for bank accounts only for those with limited education or financial literacy. In contrast, small subsidies greatly increase demand. A follow-up survey confirms these findings, demonstrating that newly opened accounts remain open and in use 2 years after the intervention.
| Item Type: | Article |
|---|---|
| Official URL: | http://dx.doi.org/10.1111/j.1540-6261.2011.01696.x |
| Additional Information: | © 2011 American Finance Association |
| Divisions: | Economics |
| Subjects: | H Social Sciences > HB Economic Theory |
| JEL classification: | G - Financial Economics > G1 - General Financial Markets > G10 - General G - Financial Economics > G2 - Financial Institutions and Services > G20 - General |
| Date Deposited: | 23 Feb 2012 14:29 |
| Last Modified: | 11 Dec 2024 23:59 |
| URI: | http://eprints.lse.ac.uk/id/eprint/42014 |
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