Subjective cost of credit, access to financial services, and household well-being (New)

Within the West African Economic and Monetary Union (WAEMU), pronounced socioeconomic disparities and limited access to credit emphasize the development challenge of linking credit costs, financial inclusion, and household well-being. Although credit is often presented as a tool for poverty reduction, its impact on welfare depends on both the actual interest rate and how these rates are perceived by households. Using data from the 2018 and 2021 World Bank Harmonized Household Living Standards Surveys and estimating mixed-effects models, this study investigated how these dynamics vary across social, economic, and geographic groups.