Win Some Lose Some? Evidence from a Randomized Microcredit Program Placement Experiment by Compartamos Banco

Theory and evidence have raised concerns that microcredit does more harm than good, particularly when offered at high interest rates. We use a clustered randomized trial, and household surveys of eligible borrowers and their businesses, to estimate impacts from an expansion of group lending at 110% APR by the largest microlender in Mexico. Average effects on a rich set of outcomes measured 18-34 months post-expansion suggest some good and little harm. Other estimators identify heterogeneous treatment effects and effects on outcome distributions, but again yield little support for the hypothesis that microcredit causes harm.


Issue Date:
2013-05
Publication Type:
Working or Discussion Paper
DOI and Other Identifiers:
Record Identifier:
https://ageconsearch.umn.edu/record/150384
PURL Identifier:
http://purl.umn.edu/150384
Total Pages:
68
JEL Codes:
D12; D22; G21; O12
Series Statement:
Economic Growth Center Discussion Paper
1026




 Record created 2017-04-01, last modified 2020-10-28

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