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Project Citation: 

Casaburi, Lorenzo, and Macchiavello, Rocco. Replication data for: Demand and Supply of Infrequent Payments as a Commitment Device: Evidence from Kenya. Nashville, TN: American Economic Association [publisher], 2019. Ann Arbor, MI: Inter-university Consortium for Political and Social Research [distributor], 2019-10-12.

Project Description

Summary:  View help for Summary Despite extensive evidence that preferences are often time-inconsistent, there is only scarce evidence of willingness to pay for commitment. Infrequent payments for frequently provided goods and services are a common feature of many markets and they may naturally provide commitment to save for lumpy expenses. Multiple experiments in the Kenyan dairy sector show that: (i) farmers are willing to incur sizable costs to receive infrequent payments as a commitment device, (ii) poor contract enforcement, however, limits competition among buyers in the supply of infrequent payments. We then present a model of demand and supply of infrequent payments and test its additional predictions.

Scope of Project

JEL Classification:  View help for JEL Classification
      K12 Contract Law
      L66 Food; Beverages; Cosmetics; Tobacco; Wine and Spirits
      O13 Economic Development: Agriculture; Natural Resources; Energy; Environment; Other Primary Products
      O17 Formal and Informal Sectors; Shadow Economy; Institutional Arrangements
      Q12 Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
      Q13 Agricultural Markets and Marketing; Cooperatives; Agribusiness

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