Facilitating Savings for Agriculture: Field Experimental Evidence from Malawi / Lasse Brune, Xavier Giné, Jessica Goldberg, Dean Yang.

Format:

Book

Author/Creator:

Brune, Lasse.

Contributor:

National Bureau of Economic Research.

Giné, Xavier.

Goldberg, Jessica.

Yang, Dean.

Series:

Working Paper Series (National Bureau of Economic Research) no. w20946.

NBER working paper series no. w20946

Language:

English

Physical Description:

1 online resource: illustrations (black and white);

Other Title:

Facilitating Savings for Agriculture

Place of Publication:

Cambridge, Mass. National Bureau of Economic Research 2015.

Summary:

We implemented a randomized intervention among Malawian farmers aimed at facilitating formal savings for agricultural inputs. Treated farmers were offered the opportunity to have their cash crop harvest proceeds deposited directly into new bank accounts in their own names, while farmers in the control group were paid harvest proceeds in cash (the status quo). The treatment led to higher savings in the months immediately prior to the next agricultural planting season, and raised agricultural input usage in that season. We also find positive treatment effects on subsequent crop sale proceeds and household expenditures. Because the treatment effect on savings was only a small fraction of the treatment effect on the value of agricultural inputs, mechanisms other than alleviation of savings constraints per se are needed to explain the treatment's impact on input utilization. We discuss other possible mechanisms through which treatment effects may have operated.

Notes:

Print version record

February 2015.