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Cover of: Microfinance and Prosocial Behaviors: Experimental Evidence of Public-Good Contributions in Uganda
Bryan C. McCannon, Zachary Rodriguez

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

Section: Articles
Volume 175 (2019) / Issue 2, pp. 228-257 (30)
Published 09.08.2018
DOI 10.1628/jite-2018-0010
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  • 10.1628/jite-2018-0010
Summary
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.