We investigate the impact of geographic diversification on the provision of credit during a financial bust. We find that during the Nicaraguan microlending crisis, lenders reduced overall credit provision but to a lesser extent to those geographic areas that contributed most to geographic...

Purpose – The purpose of this paper is to examine how shocks suffered by rural households in Ethiopia influence their decision to borrow and the source of credit. Design/methodology/approach – First, suppose a household faces a set of four borrowing alternatives: only formal borrowing, only...

Purpose – The purpose of this paper is to examine how shocks suffered by rural households in Ethiopia influence their decision to borrow and the source of credit. Design/methodology/approach – First, suppose a household faces a set of four borrowing alternatives: only formal borrowing, only...