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Farmer’s Choices and Informal Loans in China: Risk-sharing and Personality Effects

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dc.contributor.authorWang, Yunran
dc.contributor.chairTurvey, Calum G.
dc.contributor.committeeMemberGomez, Miguel I.
dc.date.accessioned2022-09-15T15:49:21Z
dc.date.available2022-09-15T15:49:21Z
dc.date.issued2022-05
dc.description47 pages
dc.description.abstractAt times, development economists have argued informal loans serve the same role as informal insurance. Empirical research shows that the motives for using informal loans are that rural households want to share risks when external shock occurs. Instead of looking at the village level, we construct a national-wide panel dataset based on the China Family Panel Study (CFPS) and the China National Bureau of Statistics to investigate Chinese farmers' motives for using informal loans and giving gifts among the social network of friends and relatives. To control for potential endogeneity between borrowing amounts, lending amounts, and the value of the gifts given, we develop a system of simultaneous equations and apply the Three-Stage Least Squares (3SLS). Our results support the hypothesis of reciprocity motives and emphasize the impact of the rural household head's personality on the financial behaviors, but we do not support the assumption of informal loans as insurance.
dc.identifier.doihttps://doi.org/10.7298/7jcw-4q34
dc.identifier.otherWang_cornell_0058O_11471
dc.identifier.otherhttp://dissertations.umi.com/cornell:11471
dc.identifier.urihttps://hdl.handle.net/1813/111658
dc.language.isoen
dc.subjectInformal Loan
dc.subjectRisk Sharing
dc.titleFarmer’s Choices and Informal Loans in China: Risk-sharing and Personality Effects
dc.typedissertation or thesis
dcterms.licensehttps://hdl.handle.net/1813/59810.2
thesis.degree.disciplineApplied Economics and Management
thesis.degree.grantorCornell University
thesis.degree.levelMaster of Science
thesis.degree.nameM.S., Applied Economics and Management

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