Risk Sharing and Transactions Costs: Evidence from Kenya's Mobile Money Revolution

@article{Jack2014RiskSA,
  title={Risk Sharing and Transactions Costs: Evidence from Kenya's Mobile Money Revolution},
  author={W. Jack and T. Suri},
  journal={The American Economic Review},
  year={2014},
  volume={104},
  pages={183-223}
}
  • W. Jack, T. Suri
  • Published 2014
  • Economics
  • The American Economic Review
  • We explore the impact of reduced transaction costs on risk sharing by estimating the effects of a mobile money innovation on consumption. In our panel sample, adoption of the innovation increased from 43 to 70 percent. We find that, while shocks reduce consumption by 7 percent for nonusers, the consumption of user households is unaffected. The mechanisms underlying these consumption effects are increases in remittances received and the diversity of senders. We report robustness checks… CONTINUE READING

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