Bryan C. McCannon, Zachary Rodriguez

Microfinance and Prosocial Behaviors: Experimental Evidence of Public-Good Contributions in Uganda

Volume 175 () / Issue 2, pp. 228-257 (30)

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Microfinance is an important component of the fight against poverty. We ask whether access to microfinance loans by the poor relates to their prosocial behaviors. A lab-in-the-field study in southern, rural Uganda is done. A public-good game is used to measure subjects' willingness to free-ride. We document higher levels of contributions by those who have previously received a microloan. We explore potential explanations such as differing social-norm assessments, measurable income effects, or sample selection bias. Receiving a microloan continuesto have an independent effect on prosociality. The results suggest that exposureto microfinance correlates with social preferences.

Bryan C. McCannon No current data available.

Zachary Rodriguez No current data available.