Financial Inclusion in Papua New Guinea
Theoretical Framework
• Model the household's decision as to whether or not to expend the
resources required to become financially included.
first attempt (to our knowledge) at a theory of household financial
inclusion
► Sen (1987): members of HH face two types of problems
simultaneously:
★ cooperation: adding to total availability
★ conflict: dividing total availability among household members
✰ decisions as to who does what, who consumes what, and who makes
which decisions
⚫ incorporates the benefits that a household will receive by becoming
financial included
▸ increased intertemporal trade: borrow/save
▸ increased intratemporal trade (increased efficiency in the allocation of
household resources)
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Davies & Nettuno
Financial Inclusion in Papua New Guinea
August 4, 2022
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