Expanding Credit Access: Using Randomized Supply Decisions to Estimate the Impacts
Dean Karlan,Jonathan Zinman +1 more
TL;DR: In this article, the impacts of expanding access to consumer credit at a 200% annual percentage rate (APR) using a field experiment and follow-up data collection were investigated.
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Abstract: Expanding access to commercial credit is a key ingredient of financial development strategies. There is less consensus on whether expanding access to consumer credit helps borrowers, particularly when loans are extended at high interest rates. Popular skepticism about "unproductive," "usurious" lending is fueled by research highlighting behavioral biases that may induce overborrowing. We estimate the impacts of expanding access to consumer credit at a 200% annual percentage rate (APR) using a field experiment and follow-up data collection. The randomly assigned marginal loans produced significant net benefits for borrowers across a wide range of outcomes. There is also some evidence that the loans were profitable. The Author 2009. Published by Oxford University Press on behalf of The Society for Financial Studies. All rights reserved. For Permissions, please e-mail: journals.permissions@oxfordjournals.org, Oxford University Press.
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Figures
Table 2 Experiment validity and compliance 
Table 1 Demographics 
Table 5 Treatment effects on credit bureau scores one and two years later Dependent variable: 1 = any ordinal 1 = any ordinal 
Table 3 Intention-to-treat effects on borrowing and access 
Table 6 Estimated profitability of marginal and inframarginal loans 
Table 4 Intention-to-treat estimates for summary index outcome measures
Citations
•Dissertation
Health and Credit in Sub-Saharan Africa
Kristin Maura Johnson
- 01 Jan 2012
TL;DR: Health and Credit in Sub-Saharan Africa by Kristin Johnson Department of Economics Duke University as mentioned in this paper, 2013. And the work in this paper is an extension of the previous work.
•Posted Content
Gender Bias and Credit Access
Steven Ongena,Alexander Popov +1 more
TL;DR: In this paper, the causal effect of gender bias on access to bank credit was studied. But the results were not driven by credit risk differences between female-and male-owned firms or by any idiosyncrasies in the set of countries in their sample.
A comparative analysis of the effect of aid and microfinance on growth
TL;DR: In this paper, the authors investigated the effect of official development aid (ODA) and micro-finance (MF) on economic growth and compared the results, identifying and analyzing the transmission mechanisms from ODA and microfinance to growth.
The Effects of Microcredit on Women's Control over Household Spending in Developing Countries: A Systematic Review and Meta‐analysis
Jos Vaessen,Ana Rivas,Maren Duvendack,Richard Palmer Jones,Frans L. Leeuw,Ger van Gils,Ruslan Lukach,Nathalie Holvoet,Johan Bastiaensen,Jorge Garcia Hombrados,Hugh Waddington +10 more
TL;DR: This article provided a systematic review of the evidence on the effects of micro-credit on women's control over household spending in developing countries, focusing on specific aspects of women's empowerment, combining statistical meta-analysis and realist synthesis.
Microfinance at the Margin: Experimental Evidence from Bosnia and Herzegovina
TL;DR: In this article, the authors used a randomised controlled trial (RCT) to analyse the impact of micro credit on poverty reduction in Bosnia and Herzegovina, finding that access to credit allowed borrowers to start and expand small-scale businesses.
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Occupational Choice and the Process of Development
TL;DR: In this paper, the authors model economic development as a process of institutional transformation by focusing on the interplay between agents' occupational decisions and the distribution of wealth, and demonstrate the robustness of this result by extending the model dynamically and studying examples in which initial wealth distributions have long-run effects.