Abstract (may include machine translation)
We created experimental variation across markets in China in the share of firms having access to a new loan product. Access to finance had a large positive direct effect on the performance of treated firms but a similar-sized negative indirect effect on that of firms with treated competitors, leading to nondetectable gains in producer surplus. Access to finance had a positive direct effect on business quality and consumer satisfaction and a negative effect on price, which were not offset by indirect effects, implying net gains in consumer surplus. We document other indirect effects and combine effects in a welfare evaluation.
Original language | English |
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Pages (from-to) | 2308-2351 |
Number of pages | 44 |
Journal | American Economic Review |
Volume | 114 |
Issue number | 8 |
DOIs | |
State | Published - Aug 2024 |
Datasets
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Data and code for: Indirect Effects of Access to Finance
Cai, J. (Creator) & Szeidl, A. (Creator), ICPSR - Interuniversity Consortium for Political and Social Research, 2024
DOI: 10.3886/e197302v1, https://www.openicpsr.org/openicpsr/project/197302/version/V1/view
Dataset