Credit Constraints and Fraud Victimization

Using a novel, nationally representative data set on fraud victimization, this paper examines the impact of credit constraints on fraud victimization and potential underlying mechanisms in Chinese urban areas. After controlling for other household characteristics and regional fixed effects, households facing credit constraints are associated with 2.3 percentage points higher probability of becoming fraud victims, and have 20.4 percent higher subsequent economic losses from fraud when they are approached. The results are robust when dealing with the endogeneity of facing credit constraints and when addressing potential sample selection bias. Further analyses show that the personal discount rate (impatience) and the need for social network expansion are critical pathways via which credit constraints affect fraud victimization. The findings suggest that improving financial development is an effective way to reduce fraud victimization.

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Bibliographic Details
Main Authors: Gao, Nan, Ma, Yuanyuan, Xu, Lixin Colin
Format: Working Paper biblioteca
Language:English
Published: World Bank, Washington, DC 2020-10
Subjects:CREDIT CONSTRAINT, FRAUD, VICTIMIZATION, PRIVATIZATION, BANKING REFORM, FINANCIAL COVERAGE, FRAUD VICTIM,
Online Access:http://documents.worldbank.org/curated/en/443311603820960549/Credit-Constraints-and-Fraud-Victimization-Evidence-from-a-Representative-Chinese-Household-Survey
https://hdl.handle.net/10986/34693
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spelling dig-okr-10986346932024-12-18T03:29:40Z Credit Constraints and Fraud Victimization Evidence from a Representative Chinese Household Survey Gao, Nan Ma, Yuanyuan Xu, Lixin Colin CREDIT CONSTRAINT FRAUD VICTIMIZATION PRIVATIZATION BANKING REFORM FINANCIAL COVERAGE FRAUD VICTIM Using a novel, nationally representative data set on fraud victimization, this paper examines the impact of credit constraints on fraud victimization and potential underlying mechanisms in Chinese urban areas. After controlling for other household characteristics and regional fixed effects, households facing credit constraints are associated with 2.3 percentage points higher probability of becoming fraud victims, and have 20.4 percent higher subsequent economic losses from fraud when they are approached. The results are robust when dealing with the endogeneity of facing credit constraints and when addressing potential sample selection bias. Further analyses show that the personal discount rate (impatience) and the need for social network expansion are critical pathways via which credit constraints affect fraud victimization. The findings suggest that improving financial development is an effective way to reduce fraud victimization. 2020-10-29T14:14:29Z 2020-10-29T14:14:29Z 2020-10 Working Paper Document de travail Documento de trabajo http://documents.worldbank.org/curated/en/443311603820960549/Credit-Constraints-and-Fraud-Victimization-Evidence-from-a-Representative-Chinese-Household-Survey https://hdl.handle.net/10986/34693 English Policy Research Working Paper;No. 9460 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank application/pdf text/plain World Bank, Washington, DC
institution Banco Mundial
collection DSpace
country Estados Unidos
countrycode US
component Bibliográfico
access En linea
databasecode dig-okr
tag biblioteca
region America del Norte
libraryname Biblioteca del Banco Mundial
language English
topic CREDIT CONSTRAINT
FRAUD
VICTIMIZATION
PRIVATIZATION
BANKING REFORM
FINANCIAL COVERAGE
FRAUD VICTIM
CREDIT CONSTRAINT
FRAUD
VICTIMIZATION
PRIVATIZATION
BANKING REFORM
FINANCIAL COVERAGE
FRAUD VICTIM
spellingShingle CREDIT CONSTRAINT
FRAUD
VICTIMIZATION
PRIVATIZATION
BANKING REFORM
FINANCIAL COVERAGE
FRAUD VICTIM
CREDIT CONSTRAINT
FRAUD
VICTIMIZATION
PRIVATIZATION
BANKING REFORM
FINANCIAL COVERAGE
FRAUD VICTIM
Gao, Nan
Ma, Yuanyuan
Xu, Lixin Colin
Credit Constraints and Fraud Victimization
description Using a novel, nationally representative data set on fraud victimization, this paper examines the impact of credit constraints on fraud victimization and potential underlying mechanisms in Chinese urban areas. After controlling for other household characteristics and regional fixed effects, households facing credit constraints are associated with 2.3 percentage points higher probability of becoming fraud victims, and have 20.4 percent higher subsequent economic losses from fraud when they are approached. The results are robust when dealing with the endogeneity of facing credit constraints and when addressing potential sample selection bias. Further analyses show that the personal discount rate (impatience) and the need for social network expansion are critical pathways via which credit constraints affect fraud victimization. The findings suggest that improving financial development is an effective way to reduce fraud victimization.
format Working Paper
topic_facet CREDIT CONSTRAINT
FRAUD
VICTIMIZATION
PRIVATIZATION
BANKING REFORM
FINANCIAL COVERAGE
FRAUD VICTIM
author Gao, Nan
Ma, Yuanyuan
Xu, Lixin Colin
author_facet Gao, Nan
Ma, Yuanyuan
Xu, Lixin Colin
author_sort Gao, Nan
title Credit Constraints and Fraud Victimization
title_short Credit Constraints and Fraud Victimization
title_full Credit Constraints and Fraud Victimization
title_fullStr Credit Constraints and Fraud Victimization
title_full_unstemmed Credit Constraints and Fraud Victimization
title_sort credit constraints and fraud victimization
publisher World Bank, Washington, DC
publishDate 2020-10
url http://documents.worldbank.org/curated/en/443311603820960549/Credit-Constraints-and-Fraud-Victimization-Evidence-from-a-Representative-Chinese-Household-Survey
https://hdl.handle.net/10986/34693
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AT xulixincolin creditconstraintsandfraudvictimization
AT gaonan evidencefromarepresentativechinesehouseholdsurvey
AT mayuanyuan evidencefromarepresentativechinesehouseholdsurvey
AT xulixincolin evidencefromarepresentativechinesehouseholdsurvey
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