Effects of Religious Violence on the Indian Credit Sector

Effects of Religious Violence on the Indian Credit Sector
Автор
 
Год
 
Страниц
 
88
ISBN
 
9783639128086
Категория
 
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Описание:

Does violence have any financial effects? In order to answer this question, it is useful to consider if violence has an economic shock. Just like any typical adverse shock, violence can have an economic impact if it induces uncertainty in a region and consequently decreases investment opportunities in the affected area. The act of violence explored in this study is the 1998 bombing that occurred in Coimbatore, India, as a result of religious tension between the Hindu and Muslim communities. The vehicle of analysis is a bidding Rosca (chit fund), and the outcomes explored are arrear rates and winning bids. More specifically, this paper aims to determine whether individuals in Roscas affected by the bomb blasts have higher arrear rates and more volatile winning bids compared to participants in the unaffected Roscas.

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