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Title: Violence and Financial Decisions: Evidence from Mobile Money in Afghanistan
Abstract We provide evidence that violence reduces the adoption and use of mobile money in three separate empirical settings in Afghanistan. First, analyzing nationwide mobile money transaction logs, we find that users exposed to violence reduce use of mobile money. Second, using panel survey data from a field experiment, we show that subjects expecting violence are significantly less likely to respond to random inducements to use mobile money. Finally, analyzing nationwide financial survey data, we find that individuals expecting violence hold more cash. Collectively, this evidence suggests that violence can impede the growth of formal financial systems.  more » « less
Award ID(s):
1942702
PAR ID:
10502558
Author(s) / Creator(s):
; ; ;
Publisher / Repository:
MIT Press
Date Published:
Journal Name:
Review of Economics and Statistics
Volume:
106
Issue:
2
ISSN:
0034-6535
Page Range / eLocation ID:
352 to 369
Format(s):
Medium: X
Sponsoring Org:
National Science Foundation
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