Does Participation in Productive Associations Signal Trust and Creditworthiness? Evidence for Nicaragua

This article studies the extent to which participation in productive associations in Nicaragua contributes to increase individuals' access to social programs and credit services. By participating in productive associations, individuals give a...

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Main Authors:	Angel-Urdinola, Diego F., Molina, Ezequiel
Format:	Policy Research Working Paper
Language:	English
Published:	World Bank, Washington, DC 2012
Subjects:	ACCESS TO CREDIT ACCESS TO LOANS ACCESS TO SERVICES ASYMMETRIC INFORMATION AVERAGE INTEREST BANKS BENEFICIARIES CAPITAL ACCUMULATION CASH TRANSFERS CHECKS COLLECTIVE COLLECTIVE ACTION COLLECTIVE ACTION PROBLEM CONSUMER CONVENTIONAL BANKS COOPERATIVES CREDIT CARDS CREDIT MARKETS CREDIT NEEDS CREDIT RATIONING CREDIT SOURCES CREDIT UNIONS CREDITOR CREDITORS CREDITWORTHINESS DEMOCRACY DEVELOPING COUNTRIES DUMMY VARIABLE ECONOMIC BENEFITS ECONOMIC CONDITIONS ECONOMICS EDUCATION PROGRAMS EMPLOYMENT EMPOWERMENT EQUALITY FAMILIES FARMERS FORMAL CREDIT FORMAL LOANS GAME THEORY GENDER HOUSEHOLD ACCESS HOUSEHOLDS HUMAN CAPITAL IMPERFECT INFORMATION INCOME INDIRECT COSTS INDIVIDUALS INFORMAL CREDIT INFORMAL LENDERS INTEREST RATE INTEREST RATES INTERNATIONAL BANK INVESTMENT ASSET LENDERS LEVEL OF CONFIDENCE LOAN LOAN DECISIONS LOCAL GOVERNMENT LOWER INTEREST RATES MERCHANTS MICRO-CREDITS MICRO-FINANCE MICRO-FINANCE INSTITUTIONS MUNICIPALITY NUTRITION PACIFIC REGION PARTICIPATIONS PERFECT INFORMATION POLITICAL PARTICIPATION PRINCIPAL-AGENT PRINCIPAL-AGENT PROBLEMS PRIVATE BANKS PROBABILITY PRODUCTIVITY PROFESSIONAL ASSOCIATIONS PROXY PUBLIC FIRMS PUBLIC FUNDS RELIGIOUS GROUPS RESOURCE ALLOCATIONS RESPONSIBILITIES RETURN RETURNS RULE OF LAW SAVINGS SECONDARY SCHOOL SIGNALING EFFECT SOCIAL ASSISTANCE SOCIAL CAPITAL TYPE OF INVESTMENT URBAN AREAS VALUABLE VILLAGE WAGE WORTH
Online Access:	http://documents.worldbank.org/curated/en/2008/02/8995267/participation-productive-associations-signal-trust-creditworthiness-evidence-nicaragua http://hdl.handle.net/10986/6425

id	okr-10986-6425
recordtype	oai_dc
spelling	okr-10986-64252021-04-23T14:02:31Z Does Participation in Productive Associations Signal Trust and Creditworthiness? Evidence for Nicaragua Angel-Urdinola, Diego F. Molina, Ezequiel ACCESS TO CREDIT ACCESS TO LOANS ACCESS TO SERVICES ASYMMETRIC INFORMATION AVERAGE INTEREST BANKS BENEFICIARIES CAPITAL ACCUMULATION CASH TRANSFERS CHECKS COLLECTIVE COLLECTIVE ACTION COLLECTIVE ACTION PROBLEM CONSUMER CONVENTIONAL BANKS COOPERATIVES CREDIT CARDS CREDIT MARKETS CREDIT NEEDS CREDIT RATIONING CREDIT SOURCES CREDIT UNIONS CREDITOR CREDITORS CREDITWORTHINESS DEMOCRACY DEVELOPING COUNTRIES DUMMY VARIABLE ECONOMIC BENEFITS ECONOMIC CONDITIONS ECONOMICS EDUCATION PROGRAMS EMPLOYMENT EMPOWERMENT EQUALITY FAMILIES FARMERS FORMAL CREDIT FORMAL LOANS GAME THEORY GENDER HOUSEHOLD ACCESS HOUSEHOLDS HUMAN CAPITAL IMPERFECT INFORMATION INCOME INDIRECT COSTS INDIVIDUALS INFORMAL CREDIT INFORMAL LENDERS INTEREST RATE INTEREST RATES INTERNATIONAL BANK INVESTMENT ASSET LENDERS LEVEL OF CONFIDENCE LOAN LOAN DECISIONS LOCAL GOVERNMENT LOWER INTEREST RATES MERCHANTS MICRO-CREDITS MICRO-FINANCE MICRO-FINANCE INSTITUTIONS MUNICIPALITY NUTRITION PACIFIC REGION PARTICIPATIONS PERFECT INFORMATION POLITICAL PARTICIPATION PRINCIPAL-AGENT PRINCIPAL-AGENT PROBLEMS PRIVATE BANKS PROBABILITY PRODUCTIVITY PROFESSIONAL ASSOCIATIONS PROXY PUBLIC FIRMS PUBLIC FUNDS RELIGIOUS GROUPS RESOURCE ALLOCATIONS RESPONSIBILITIES RETURN RETURNS RULE OF LAW SAVINGS SECONDARY SCHOOL SIGNALING EFFECT SOCIAL ASSISTANCE SOCIAL CAPITAL TYPE OF INVESTMENT URBAN AREAS VALUABLE VILLAGE WAGE WORTH This article studies the extent to which participation in productive associations in Nicaragua contributes to increase individuals' access to social programs and credit services. By participating in productive associations, individuals give a good signal to firms and are rewarded with better transactions and more access to the services they provide, ceteris paribus. Estimates using 2005 data indicate that households that participate in productive associations display higher access to credit and to social programs that promote investment. Additionally, participation in productive associations is weakly associated to more favorable credit outcomes among those households that receive loans, such as lower interest rates and a lower probability of wanting more credit than what was accessible to them. 2012-05-25T15:21:42Z 2012-05-25T15:21:42Z 2008-02 http://documents.worldbank.org/curated/en/2008/02/8995267/participation-productive-associations-signal-trust-creditworthiness-evidence-nicaragua http://hdl.handle.net/10986/6425 English Policy Research Working Paper; No. 4512 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Publications & Research :: Policy Research Working Paper Publications & Research Latin America & Caribbean Nicaragua
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	English
topic	ACCESS TO CREDIT ACCESS TO LOANS ACCESS TO SERVICES ASYMMETRIC INFORMATION AVERAGE INTEREST BANKS BENEFICIARIES CAPITAL ACCUMULATION CASH TRANSFERS CHECKS COLLECTIVE COLLECTIVE ACTION COLLECTIVE ACTION PROBLEM CONSUMER CONVENTIONAL BANKS COOPERATIVES CREDIT CARDS CREDIT MARKETS CREDIT NEEDS CREDIT RATIONING CREDIT SOURCES CREDIT UNIONS CREDITOR CREDITORS CREDITWORTHINESS DEMOCRACY DEVELOPING COUNTRIES DUMMY VARIABLE ECONOMIC BENEFITS ECONOMIC CONDITIONS ECONOMICS EDUCATION PROGRAMS EMPLOYMENT EMPOWERMENT EQUALITY FAMILIES FARMERS FORMAL CREDIT FORMAL LOANS GAME THEORY GENDER HOUSEHOLD ACCESS HOUSEHOLDS HUMAN CAPITAL IMPERFECT INFORMATION INCOME INDIRECT COSTS INDIVIDUALS INFORMAL CREDIT INFORMAL LENDERS INTEREST RATE INTEREST RATES INTERNATIONAL BANK INVESTMENT ASSET LENDERS LEVEL OF CONFIDENCE LOAN LOAN DECISIONS LOCAL GOVERNMENT LOWER INTEREST RATES MERCHANTS MICRO-CREDITS MICRO-FINANCE MICRO-FINANCE INSTITUTIONS MUNICIPALITY NUTRITION PACIFIC REGION PARTICIPATIONS PERFECT INFORMATION POLITICAL PARTICIPATION PRINCIPAL-AGENT PRINCIPAL-AGENT PROBLEMS PRIVATE BANKS PROBABILITY PRODUCTIVITY PROFESSIONAL ASSOCIATIONS PROXY PUBLIC FIRMS PUBLIC FUNDS RELIGIOUS GROUPS RESOURCE ALLOCATIONS RESPONSIBILITIES RETURN RETURNS RULE OF LAW SAVINGS SECONDARY SCHOOL SIGNALING EFFECT SOCIAL ASSISTANCE SOCIAL CAPITAL TYPE OF INVESTMENT URBAN AREAS VALUABLE VILLAGE WAGE WORTH
spellingShingle	ACCESS TO CREDIT ACCESS TO LOANS ACCESS TO SERVICES ASYMMETRIC INFORMATION AVERAGE INTEREST BANKS BENEFICIARIES CAPITAL ACCUMULATION CASH TRANSFERS CHECKS COLLECTIVE COLLECTIVE ACTION COLLECTIVE ACTION PROBLEM CONSUMER CONVENTIONAL BANKS COOPERATIVES CREDIT CARDS CREDIT MARKETS CREDIT NEEDS CREDIT RATIONING CREDIT SOURCES CREDIT UNIONS CREDITOR CREDITORS CREDITWORTHINESS DEMOCRACY DEVELOPING COUNTRIES DUMMY VARIABLE ECONOMIC BENEFITS ECONOMIC CONDITIONS ECONOMICS EDUCATION PROGRAMS EMPLOYMENT EMPOWERMENT EQUALITY FAMILIES FARMERS FORMAL CREDIT FORMAL LOANS GAME THEORY GENDER HOUSEHOLD ACCESS HOUSEHOLDS HUMAN CAPITAL IMPERFECT INFORMATION INCOME INDIRECT COSTS INDIVIDUALS INFORMAL CREDIT INFORMAL LENDERS INTEREST RATE INTEREST RATES INTERNATIONAL BANK INVESTMENT ASSET LENDERS LEVEL OF CONFIDENCE LOAN LOAN DECISIONS LOCAL GOVERNMENT LOWER INTEREST RATES MERCHANTS MICRO-CREDITS MICRO-FINANCE MICRO-FINANCE INSTITUTIONS MUNICIPALITY NUTRITION PACIFIC REGION PARTICIPATIONS PERFECT INFORMATION POLITICAL PARTICIPATION PRINCIPAL-AGENT PRINCIPAL-AGENT PROBLEMS PRIVATE BANKS PROBABILITY PRODUCTIVITY PROFESSIONAL ASSOCIATIONS PROXY PUBLIC FIRMS PUBLIC FUNDS RELIGIOUS GROUPS RESOURCE ALLOCATIONS RESPONSIBILITIES RETURN RETURNS RULE OF LAW SAVINGS SECONDARY SCHOOL SIGNALING EFFECT SOCIAL ASSISTANCE SOCIAL CAPITAL TYPE OF INVESTMENT URBAN AREAS VALUABLE VILLAGE WAGE WORTH Angel-Urdinola, Diego F. Molina, Ezequiel Does Participation in Productive Associations Signal Trust and Creditworthiness? Evidence for Nicaragua
geographic_facet	Latin America & Caribbean Nicaragua
relation	Policy Research Working Paper; No. 4512
description	This article studies the extent to which participation in productive associations in Nicaragua contributes to increase individuals' access to social programs and credit services. By participating in productive associations, individuals give a good signal to firms and are rewarded with better transactions and more access to the services they provide, ceteris paribus. Estimates using 2005 data indicate that households that participate in productive associations display higher access to credit and to social programs that promote investment. Additionally, participation in productive associations is weakly associated to more favorable credit outcomes among those households that receive loans, such as lower interest rates and a lower probability of wanting more credit than what was accessible to them.
format	Publications & Research :: Policy Research Working Paper
author	Angel-Urdinola, Diego F. Molina, Ezequiel
author_facet	Angel-Urdinola, Diego F. Molina, Ezequiel
author_sort	Angel-Urdinola, Diego F.
title	Does Participation in Productive Associations Signal Trust and Creditworthiness? Evidence for Nicaragua
title_short	Does Participation in Productive Associations Signal Trust and Creditworthiness? Evidence for Nicaragua
title_full	Does Participation in Productive Associations Signal Trust and Creditworthiness? Evidence for Nicaragua
title_fullStr	Does Participation in Productive Associations Signal Trust and Creditworthiness? Evidence for Nicaragua
title_full_unstemmed	Does Participation in Productive Associations Signal Trust and Creditworthiness? Evidence for Nicaragua
title_sort	does participation in productive associations signal trust and creditworthiness? evidence for nicaragua
publisher	World Bank, Washington, DC
publishDate	2012
url	http://documents.worldbank.org/curated/en/2008/02/8995267/participation-productive-associations-signal-trust-creditworthiness-evidence-nicaragua http://hdl.handle.net/10986/6425
_version_	1764400353186414592

Does Participation in Productive Associations Signal Trust and Creditworthiness? Evidence for Nicaragua

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