Credit Constraints and Fraud Victimization : Evidence from a Representative Chinese Household Survey

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...

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Main Authors:	Gao, Nan, Ma, Yuanyuan, Xu, Lixin Colin
Format:	Working Paper
Language:	English
Published:	World Bank, Washington, DC 2020
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 http://hdl.handle.net/10986/34693

id	okr-10986-34693
recordtype	oai_dc
spelling	okr-10986-346932022-09-20T00:11:36Z 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 http://documents.worldbank.org/curated/en/443311603820960549/Credit-Constraints-and-Fraud-Victimization-Evidence-from-a-Representative-Chinese-Household-Survey http://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 World Bank, Washington, DC Publications & Research Publications & Research :: Policy Research Working Paper East Asia and Pacific China
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	English
topic	CREDIT CONSTRAINT FRAUD VICTIMIZATION PRIVATIZATION BANKING REFORM FINANCIAL COVERAGE FRAUD VICTIM
spellingShingle	CREDIT CONSTRAINT FRAUD VICTIMIZATION PRIVATIZATION BANKING REFORM FINANCIAL COVERAGE FRAUD VICTIM Gao, Nan Ma, Yuanyuan Xu, Lixin Colin Credit Constraints and Fraud Victimization : Evidence from a Representative Chinese Household Survey
geographic_facet	East Asia and Pacific China
relation	Policy Research Working Paper;No. 9460
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
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 : Evidence from a Representative Chinese Household Survey
title_short	Credit Constraints and Fraud Victimization : Evidence from a Representative Chinese Household Survey
title_full	Credit Constraints and Fraud Victimization : Evidence from a Representative Chinese Household Survey
title_fullStr	Credit Constraints and Fraud Victimization : Evidence from a Representative Chinese Household Survey
title_full_unstemmed	Credit Constraints and Fraud Victimization : Evidence from a Representative Chinese Household Survey
title_sort	credit constraints and fraud victimization : evidence from a representative chinese household survey
publisher	World Bank, Washington, DC
publishDate	2020
url	http://documents.worldbank.org/curated/en/443311603820960549/Credit-Constraints-and-Fraud-Victimization-Evidence-from-a-Representative-Chinese-Household-Survey http://hdl.handle.net/10986/34693
_version_	1764481449991340032

Credit Constraints and Fraud Victimization : Evidence from a Representative Chinese Household Survey

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