VIOLENCE AND FINANCIAL DECISIONS: EVIDENCE FROM MOBILE MONEY IN AFGHANISTAN

  • Joshua E. Blumenstock
  • , Michael Callen
  • , Tarek Ghani
  • , Robert Gonzalez

    Research output: Contribution to journalArticlepeer-review

    4 Scopus citations

    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 ex-posed 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.

    Original languageEnglish
    Pages (from-to)352-369
    Number of pages18
    JournalReview of Economics and Statistics
    Volume106
    Issue number2
    DOIs
    StatePublished - Mar 19 2024

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