Transaction Networks: Evidence from Mobile Money in Kenya
William Jack, Adam Ray, Tavneet Suri
American Economic Review · 2013 · Volume 103 · Issue 3
Abstract
Mobile money allows households in Kenya to spread risk more efficiently. In this paper we show that these efficiencies are achieved through deeper financial integration and expanded informal networks. Active networks are more geographically dispersed and support more reciprocal financial arrangements. Consistent with the reported reciprocity, mobile money users report a higher share of transactions as being for credit and insurance purposes.
Keywords
Network Formation and Analysis: Theory, Monetary Systems, Standards, Regimes, Government and the Monetary System, Payment Systems, Banks, Depository Institutions, Micro Finance Institutions, Mortgages, Economic Development: Financial Markets, Saving and Capital Investment, Corporate Finance and Governance
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