Liquidity Constraints and Willingness to Pay for Solar Lamps and Water Filters in Jakarta

11 Pages Posted: 18 Sep 2018

See all articles by Robert Lensink

Robert Lensink

University of Groningen - Department of Economics, Econometrics and Finance; Wageningen UR - Development Economics Group

Tom Raster

University of Groningen - Faculty of Economics and Business

Angelique Timmer

Ivy Foundation

Date Written: March 2017

Abstract

In this study, using the Becker–DeGroot–Marschak mechanism, we assess the Willingness to Pay for water filters and solar lamps in Indonesia. The study shows that credit constraints are important determinants of the low levels of WTP and low adoption rates of preventative health technologies. Providing women with an option to spread out the payments for these products over 50 weekly periods more than doubles the maximum WTP.

Keywords: economics, microfinance, willingness to pay, water filters, solar lamps, BDM auction, Indonesia

Suggested Citation

Lensink, Robert and Raster, Tom and Timmer, Angelique, Liquidity Constraints and Willingness to Pay for Solar Lamps and Water Filters in Jakarta (March 2017). The European Journal of Development Research, Vol. 30, Issue 4, 2017, Available at SSRN: https://ssrn.com/abstract=3251224 or http://dx.doi.org/10.1057/s41287-017-0078-3

Robert Lensink (Contact Author)

University of Groningen - Department of Economics, Econometrics and Finance ( email )

P.O. Box 800
9700 AH Groningen
Netherlands

Wageningen UR - Development Economics Group ( email )

Hollandseweg 1
WAGENINGEN, 6706 KN
Netherlands

Tom Raster

University of Groningen - Faculty of Economics and Business ( email )

Postbus 72
9700 AB Groningen
Netherlands

Angelique Timmer

Ivy Foundation ( email )

Jacob Obrechtstraat 67
Amsterdam, 1071 kJ
Netherlands

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