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Fields Changed

Registration

Field Before After
Trial Status on_going completed
Last Published October 23, 2019 04:09 PM April 16, 2021 10:18 AM
Study Withdrawn No
Intervention Completion Date February 14, 2020
Data Collection Complete Yes
Final Sample Size: Number of Clusters (Unit of Randomization) 11,360 pay as you go solar customers (2,000 treated, 9,360 control)
Was attrition correlated with treatment status? No
Final Sample Size: Total Number of Observations 11,360 pay as you go solar customers
Final Sample Size (or Number of Clusters) by Treatment Arms 250 high fee/high borrowing limit/time limit on repayment, 250 high fee/high borrowing limit/no time limit on repayment, 250 high fee/low borrowing limit/time limit on repayment, 250 high fee/low borrowing limit/no time limit on repayment, 250 low fee/high borrowing limit/time limit on repayment, 250 low fee/high borrowing limit/no time limit on repayment, 250 low fee/low borrowing limit/time limit on repayment, 250 low fee/low borrowing limit/no time limit on repayment, 9,360 control.
Is there a restricted access data set available on request? No
Program Files No
Data Collection Completion Date June 14, 2020
Is data available for public use? No
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Papers

Field Before After
Paper Abstract I show that transaction costs for perishable goods create welfare loss. The loss comes from the trade-off between transaction costs and the waste that occurs when perishable goods expire, a trade-off that is compounded by liquidity constraints. I explore this trade-off using prepaid solar access time in rural Rwanda, a strictly non-storable good with transaction costs. I randomly offer 2,000 current solar customers a line of credit for solar access time, which alleviates liquidity constraints and lowers transaction costs. Consumers who previously bought in bulk respond by eliminating wasteful consumption, reducing demand by up to 6.4%. Those who are the most likely to be liquidity constrained increase demand by 88%. My results illustrate that transaction costs for perishable goods distort willingness to pay in opposite directions for different subsets of consumers. I estimate consumer surplus from electricity under the less distorted conditions of my experiment. My estimates indicate a stronger cost-benefit proposition for universal electrification than others in the literature, but indicate that marginal households' willingness to pay still falls below current cost-covering levels.
Paper Citation Lang, Megan (2021). "Consuming Perishable Goods in the Presence of Transaction Costs and Liquidity Constraints."
Paper URL https://www.dropbox.com/s/tnxi971dtz32474/Contracting_Electricity_LICs.pdf?dl=0
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