Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
7395178 | World Development | 2014 | 12 Pages |
Abstract
This paper utilizes Brazilian data to investigate interest-rate sensitivity and informational issues associated with the credit demand of the middle-income class in a large emerging economy. This study's data were collected from an experiment in which credit offers with randomized interest rates were sent to recipients. The results indicate that credit constraints and informational issues are important for both the lower middle-class and higher middle-class income groups. Interest rate reductions may be more effective for higher income groups.
Keywords
Related Topics
Social Sciences and Humanities
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Economics and Econometrics
Authors
Claudio Ribeiro de Lucinda, Rodrigo Luiz Vieira,