JEL classification Q14, G21, D12
The frequent announcements of loan waivers have drawn attention to their impact on various aspects of rural livelihoods. Using a difference-in-difference approach, this paper investigates the impact of the agriculture debt waiver debt relief scheme (2008) on the consumption expenditure of smallholder farmers on food and non-food items. We do not find any significant difference in the consumption expenditure on food or non-food items, both categories showed increased consumption expenditure over time without the loan waiver.
Agricultural credit, loan repayment, consumption expenditure
