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Locking crops to unlock investment: Experimental evidence on warrantage in Burkina Faso

Abstract

Warrantage is an innovative model of rural finance with the potential to overcome credit, crop storage, and behavioral constraints through a localized inventory credit system. Using a randomized controlled trial varying household level access to warrantage, we measure its impacts among households interested in participating. Among treated households, take-up of storage is high, while credit take-up is moderate. Treated households primarily store grains sell their production over an extended period, at a time when prices are higher resulting in higher sales revenue. Increased incomes are spent on long-term investments, including education, livestock, and agricultural inputs for the subsequent year.

article Article
date_range 2023
language English
link Link of the paper
format_quote
D
Delavallade Clara
G
Godlonton Susan
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Featured Keywords
Rural finance
Inventory credit
Storage
Burkina Faso
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