Documenting the Birth of a Financial Economy
Name
Suri-2012-Documenting the Birth of a Financial Economy.pdf
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169.57 KB
Format
Adobe PDF
Checksum (MD5)
ee2c367eba43e38a128b6c10c8f8005f
Author(s)
Suri, Tavneet
Jack, William
Stoker, Thomas Martin
Date Issued
September 2011
Journal
Proceedings of the National Academy of Sciences of the United States of America
Publisher
National Academy of Sciences (U.S.)
Citation
Suri, T., W. Jack, and T. M. Stoker. “Documenting the Birth of a Financial Economy.” Proceedings of the National Academy of Sciences of the United States 109.26 (2012): 10257–10262. Web.
Version
Final published version
Abstract
The birth and explosive growth of mobile money in Kenya has provided economists with an opportunity to study the evolution and impact of a new financial system. Mobile money is an innovation that allows individuals to store, send, and receive money on their mobile phone via text message. This system has opened up basic financial services to many who were previously excluded, and has had real and measurable impacts on the ability of households to protect themselves against health risks. Using a unique survey instrument covering nearly 2,300 households over 2008–2010, we first document the lightning-fast adoption of mobile money in Kenya, which was faster than most documented modern technologies in the United States. We then present evidence on how this innovation allows households to respond better to unexpected adverse health events. We find that in the face of these events, users of mobile money are better able to tap into remittances to finance additional health care costs without having to forego necessary expenditures on education, food, and other consumption needs.
MIT Department
Sloan School of Management
Terms of Use
Article is made available in accordance with the publisher's policy and may be subject to US copyright law. Please refer to the publisher's site for terms of use.
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DOI of Published Version
https://doi.org/10.1073/pnas.1115843109
