This website uses cookies.

By clicking the "Accept" button or continuing to browse our site, you agree to first-party and session-only cookies being stored on your device to enhance site navigation and analyze site performance and traffic. For more information on our use of cookies, please see our Privacy Policy.

  1. Home
  2. Journals
  3. American Economic Review
  4. May 2013
  5. Transaction Networks: Evidence from Mobile Money in Kenya

American Economic Review

ISSN 0002-8282 (Print) | ISSN 1944-7981 (Online)

Transaction Networks: Evidence from Mobile Money in Kenya

  • William Jack
  • Adam Ray
  • Tavneet Suri
American Economic Review
vol. 103, no. 3, May 2013
(pp. 356–61)
Download Full Text PDF

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.

Citation

Jack, William, Adam Ray, and Tavneet Suri. 2013. "Transaction Networks: Evidence from Mobile Money in Kenya." American Economic Review, 103 (3): 356–61. DOI: 10.1257/aer.103.3.356

Additional Materials

JEL Classification

  • D85 Network Formation and Analysis: Theory
  • E42 Monetary Systems; Standards; Regimes; Government and the Monetary System; Payment Systems
  • G21 Banks; Depository Institutions; Micro Finance Institutions; Mortgages
  • O16 Economic Development: Financial Markets; Saving and Capital Investment; Corporate Finance and Governance