Tag
liquidity_constraints
14 findings
DevelopmentBaseline Investment Intention Realization in MicroenterprisesCapital grant recipients invested 179.3 cedis more than control firms in their baseline-specified category at Round 3 (p < 0.10), but by Round 8, total investment flows turned negative (-378.3 cedis, p < 0.10), showing no persistent asset accumulation.RCTFinance & microfinanceCash Timing and Liquidity Mismatch in Insurance DemandDelays in marketing meant farmers had already spent cash reserves on fertilizer prior to insurance offer windows, depressing cash sales. 70% of households reported lacking sufficient income for basic needs, amplifying time-sensitive liquidity barriers.Observational StudyEducationDisbursement Timing Liquidity IncentivesStandard periodic attendance subsidies increased secondary school attendance by 2 to 4 percentage points, whereas lump-sum payments timed at matriculation deadlines increased tertiary education attendance by over 9 percentage points.RCTFinance & microfinanceGrace Period Debt ContractGrace period clients exhibited 6.0% higher short-run business investment, nearly 3 times higher rates of new business formation (2.0% control vs 4.6% treatment), 41.0% higher weekly profits, 19.5% higher monthly household income, 81.0% higher business capital, and an 11.0% to 13.0% monthly return on capital, alongside default rates that were 6 to 9 percentage points higher (5.4% default vs 1.6% control at 24 weeks).RCTFinance & microfinanceHousehold Income Shock Vulnerability62.0% of households reported an income shock in the previous month, 16.0% missed work days due to shocks, 19.0% reported chronic household illness, and households reported recovering only 37.0% of inventory value during emergency 24-hour liquidations.Observational StudyDevelopmentInterim Liquidity Relief and Worker ProductivityReceiving an interim cash infusion increased worker output by 0.109 SDs (6.9%, p=0.020) and reduced attentional lapses by 0.08 SDs (p=0.092), with productivity gains concentrated among poorer workers (+0.204 SDs or 13.0%, p=0.003).RCTLabour & employmentLabeled Cash Transfers for Refugee Job SearchFour months post-treatment, the cash grant increased Syrian refugee employment by 3.8 percentage points (a 70% increase over control) and raised earnings by 65% (p = 0.040). It doubled job retention rates from 3.3% to 6.2% (p = 0.036) and increased hourly wages by 0.308 JOD (p = 0.055).RCTLabour & employmentLiquidity Constraints in Optimal Job SearchMedian baseline search expenditure consumed 16% of total weekly expenditures (rising to 25% for 6-day searchers); receiving transport cash subsidies induced a temporary drop in low-quality work probability as cash-constrained youth substituted short-term casual work for active central job search.RCTEducationLiquidity Constraint Neutrality in Student Dropout DynamicsTargeted and untargeted cash scholarship interventions produced a precisely estimated null effect (0 percentage point impact) on high school graduation rates.RCTDevelopmentMigration Liquidity and Retention DualityIn Comoros, cash earned through workfare enabled marginalized groups to fund previously unaffordable migration costs; in India, NREGA work opportunities available close to home significantly reduced internal labor migration out of rural areas.RCTEconomics (general)Payment Mode Equivalence Under Unconstrained LiquidityDynamic labor supply responses over a 10-year follow-up period show statistically indistinguishable trajectory patterns between lump-sum payout recipients and monthly annuity recipients, rejecting severe present bias or binding borrowing constraints.RCTLabour & employmentSeasonal Labor Supply and Liquidity ConstraintsHigh-season workers facing acute liquidity constraints and lean food months report higher recent daily wages (344.6 MWK vs 257.7 MWK, p < 0.01) and sort 0.48 more units per day (p < 0.01). Self-reported cash-generating outside options significantly lower minimum reservation rates within worker.RCTEconomics (general)Self-Employment Decoupling from Liquidity ConstraintsWinning a 1M SEK windfall reduces self-employment income by 0.051 SEK per 100 SEK won (p = 0.088), representing a 7.72% reduction relative to baseline mean self-employment income (6,598 SEK), which is a larger proportional drop than wage earnings (-5.49%); self-employment participation drops by 0.139 percentage points per 1M SEK won (p = 0.491), contradicting theories that liquidity shocks promote entrepreneurial entry.RCTEconomics (general)Targeted Capital Asset SpurtAt two months post-grant (Round 3), capital grant recipients spent 179.3 GH¢ more than the control group on their baseline-stated target investments (p < 0.10) and showed a net asset/savings financial flow increase of 326.2 GH¢ at Round 6 (p < 0.01). By Round 8 (two years post-baseline), new investment flows turned negative (-13.70 GH¢ for capital only, -64.92 GH¢ for combined, p > 0.10).RCT