Do Microloan Officers Want to Lend to the Less Advantaged? Evidence from a Choice Experiment
AbstractThe mission of microfinance is generally perceived as compensation for the failure of the mainstream financial institutions to deliver access to finance to the poor. Microloan officers are central players in microloan origination process. We conduct a choice experiment in Burundi, one of the poorest countries in the world, to determine whether the poorer and more deprived are indeed given preference by microloan officers. The results suggest that the less advantaged individuals have just slightly higher chances of being granted a loan. Surprisingly, we find very little difference between the preferences of microloan officers of nonprofit and for-profit MFIs.
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Bibliographic InfoArticle provided by Elsevier in its journal World Development.
Volume (Year): 42 (2013)
Issue (Month): C ()
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Web page: http://www.elsevier.com/locate/worlddev
microfinance; choice experiment; microloan officers; nonprofit organizations;
Other versions of this item:
- Sagamba, Moïse & Shchetinin, Oleg & Yusupov, Nurmukhammad, 2011. "Do Microloan Officers Want to Lend to the Less Advantaged? Evidence from a Choice Experiment," Working Papers in Economics 492, University of Gothenburg, Department of Economics.
- C83 - Mathematical and Quantitative Methods - - Data Collection and Data Estimation Methodology; Computer Programs - - - Survey Methods; Sampling Methods
- C93 - Mathematical and Quantitative Methods - - Design of Experiments - - - Field Experiments
- G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
- L31 - Industrial Organization - - Nonprofit Organizations and Public Enterprise - - - Nonprofit Institutions; NGOs
- O55 - Economic Development, Technological Change, and Growth - - Economywide Country Studies - - - Africa
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