Skip to Main Navigation

Credit Constraints and Fraud Victimization : Evidence from a Representative Chinese Household Survey (English)

Using a novel, nationally representative data set on fraud victimization, this paper examines the impact of credit constraints on fraud victimization and potential underlying mechanisms in Chinese urban areas. After controlling for other household characteristics and regional fixed effects, households facing credit constraints are associated with 2.3 percentage points higher probability of becoming fraud victims, and have 20.4 percent higher subsequent economic losses from fraud when they are approached. The results are robust when dealing with the endogeneity of facing credit constraints and when addressing potential sample selection bias. Further analyses show that the personal discount rate (impatience) and the need for social network expansion are critical pathways via which credit constraints affect fraud victimization. The findings suggest that improving financial development is an effective way to reduce fraud victimization.

Details

Downloads

COMPLETE REPORT

Official version of document (may contain signatures, etc)

  • Official PDF
  • TXT*
  • Total Downloads** :
  • Download Stats
  • *The text version is uncorrected OCR text and is included solely to benefit users with slow connectivity.

Citation

Gao,Nan Ma,Yuanyuan Xu,L. Colin

Credit Constraints and Fraud Victimization : Evidence from a Representative Chinese Household Survey (English). Policy Research working paper,no. WPS 9460 Washington, D.C. : World Bank Group. http://documents.worldbank.org/curated/en/443311603820960549/Credit-Constraints-and-Fraud-Victimization-Evidence-from-a-Representative-Chinese-Household-Survey