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Taking Stock of the Evidence on Microfinancial Interventions

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Abstract

We review the empirical evidence on microfinance and asset grants to the ultra poor or microentrepreneurs and use quantitative economic theory to account for this evidence. Properly executed, these interventions can help segments of the population increase their income and consumption, but neither literature gives much reason to believe that such interventions can lead to wide-scale, transformative impacts akin to escaping aggregate poverty traps.

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  • Francisco J. Buera & Joseph P. Kaboski & Yongseok Shin, 2020. "Taking Stock of the Evidence on Microfinancial Interventions," Review, Federal Reserve Bank of St. Louis, vol. 102(2), pages 173-202, May.
  • Handle: RePEc:fip:fedlrv:88589
    DOI: 10.20955/r.102.173-202
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    JEL classification:

    • O16 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance

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