Skip to content

Research at St Andrews

Social groups and credit shocks: evidence of inequalities in consumption smoothing

Research output: Working paperDiscussion paper

Author(s)

Vibhor Saxena, Ishaan Bindal, Philippe LeMay-Boucher

School/Research organisations

Abstract

A strand of research holds the view that restricting access to credit to regulate over-borrowing can worsen consumers’ financial condition. Another strand of research holds the view that access to credit in the developing countries with subprime credit markets is determined by social groupings and ethnic affiliations. By merging these two strands of research, we investigate the impact of Andhra Pradesh microfinance act (2010) on the consumption expenditure of marginalised social groups and the upper caste Hindu groups in India. We construct an aggregated district level panel data for eight quarters and estimate the impact of unanticipated policy change. The results of our analysis show that the sudden restriction of access to credit has larger impact on the consumption levels of the marginalised social groups: lower castes, tribes, and Muslims. The findings also confirm the failure of contingency policy enacted for smoothing consumption.
Close

Details

Original languageEnglish
Place of PublicationSt Andrews
PublisherUniversity of St Andrews
Pages1-28
Number of pages28
Publication statusPublished - 31 Jan 2019

Publication series

NameSchool of Economics and Finance Discussion Paper
PublisherUniversity of St Andrews
No.1901
ISSN (Print)0962-4031
ISSN (Electronic)2055-303X

    Research areas

  • Financial deleveraging, Social insurance, Consumption smoothing, Microfinance, Andhra Pradesh

Discover related content
Find related publications, people, projects and more using interactive charts.

View graph of relations

Related by author

  1. Inequalities in LPG and electricity consumption in India: The role of caste, tribe, and religion

    Saxena, V. & Bhattacharya, PC., Feb 2018, In : Energy for Sustainable Development. 42, C, p. 44-53

    Research output: Contribution to journalArticle

  2. Inequalities in accessing LPG and electricity consumption in India: the role of caste, tribe, and religion

    Saxena, V. & Bhattacharya, P. C., 25 Jun 2017, St Andrews: University of St Andrews, p. 1-32, 32 p. (School of Economics & Finance Discussion Paper; no. 1512).

    Research output: Working paperDiscussion paper

  3. Gender inequality and economic development in BRICS countries

    Saxena, V. & Bhattacharya, P. C., 2017, (Accepted/In press) Oxford Handbook on BRICS and Emerging Markets. Anand, PB., Comim, F., Fennell, S. & Weiss, J. (eds.). Oxford University Press: OXFORD UNIV PRESS

    Research output: Chapter in Book/Report/Conference proceedingChapter

  4. Socio-economic determinants of child and juvenile sex ratios in India: A longitudinal analysis

    Saxena, V. & Bhattacharya, P. C., 2017, (Submitted) 24 p.

    Research output: Working paper

ID: 257592173