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Financial Services Experiments

Financial services and the level of financial intermediation in an economy serve to improve household (and national) welfare by lowering transaction costs, allowing investment in productive activities and helping households to smooth consumption and protect themselves from economic shocks.  Reviews of both savings and credit issues were covered in the Designing Household Survey Questionnaire book (see chapters by Kochar,  2000Scott, 2000).  Several important recommendations for improving the collection of savings and credit data in LSMS surveys were made, recommendations that, in some aspects, represented a significant change from what had been done in LSMS surveys before.  More recent LSMS surveys have addressed several of these issues (Bosnia and Herzegovina 2001Panama 2003 for example).

The experiments in financial services will focus primarily on two areas: (1) the validity of household level data collected from a lone respondent in the household; and (2) using the results of multi-country surveys to revise, as needed, the design of the credit and savings module for LSMS surveys.

Experiments

Financial Services In Ghana



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