Assuming a risk-neutral bank and assuming household utility to be exponential, we show how under information symmetry … the covariance of income and loan repayments may explain higher household borrowings than in the case without default … that in a situation in which a household without default option would neither borrow nor save, the existence of a default …

We analyse how money as a store of value affects the decisions of a representative household under diversifiable and …. Assuming exponential utility allows us to derive an explicit relationship between optimal money holdings, the household …

poor. The paper estimates the determinants of the household's use of one, two or all three types of microfinancial services … applying ordered probit models and additionally probit models for combinations of them. By doing this on household survey data … from Sri Lanka, there is empirical evidence that household's probability to participate in microfinancial services …