@article{Beaman:183318, recid = {183318}, author = {Beaman, Lori and Karlan, Dean S. and Thuysbaert, Bram and Udry, Christopher}, title = {Self-Selection into Credit Markets: Evidence from Agriculture in Mali}, address = {2014-05}, number = {1858-2016-152950}, series = {Economic Growth Center Discussion Paper}, pages = {46}, year = {2014}, note = {Revised version of this paper posted Sept. 1, 2015}, abstract = {We examine whether returns to capital are higher for farmers who borrow than for those who do not, a direct implication of many credit market models. We measure the difference in returns through a two‐stage loan and grant experiment. We find large positive investment responses and returns to grants for a random (representative) sample of farmers, showing that liquidity constraints bind. However, we find zero returns to grants for a sample of farmers who endogenously did not borrow. Thus we find important heterogeneity, even conditional on a wide range of observed characteristics, which has critical implications for theory and policy.}, url = {http://ageconsearch.umn.edu/record/183318}, doi = {https://doi.org/10.22004/ag.econ.183318}, }