Cookies?
Library Header Image
LSE Research Online LSE Library Services

Prices or knowledge?: what drives demand for financial services in emerging markets?

Cole, Shawn, Sampson, Thomas and Zia, Bilal (2011) Prices or knowledge?: what drives demand for financial services in emerging markets? The Journal of Finance, 66 (6). pp. 1933-1967. ISSN 0022-1082

Full text not available from this repository.

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
Library of Congress subject classification: H Social Sciences > HB Economic Theory
Journal of Economic Literature Classification System: G - Financial Economics > G1 - General Financial Markets > G10 - General
G - Financial Economics > G2 - Financial Institutions and Services > G20 - General
Sets: Departments > Economics
Collections > Economists Online
Rights: http://www.lse.ac.uk/library/usingTheLibrary/academicSupport/OA/depositYourResearch.aspx
Date Deposited: 23 Feb 2012 14:29
URL: http://eprints.lse.ac.uk/42014/

Actions (login required)

Record administration - authorised staff only Record administration - authorised staff only