IDEAS home Printed from https://ideas.repec.org/a/taf/jdevst/v44y2008i4p504-518.html

Overcoming Selection Bias in Microcredit Impact Assessments: A Case Study in Peru

Author

Listed:
  • Gwendolyn Alexander Tedeschi

Abstract

There are several potential sources of bias in microcredit impact assessments. This paper uses a panel data set from a Peruvian MFI to test for impact of credit on microenterprise profits, while controlling for these biases. We find that those who will eventually become borrowers have significantly higher incomes than those who will not become borrowers, implying that selection into the lending programme is a substantial problem. After controlling for this selection, we find that an average microentrepreneur who borrows earns significantly higher enterprise profits than one who does not borrow, and that na�ve models, which do not control for selection, overestimate this impact. Fixed effects estimates give roughly the same results as the quasi-experimental cross-section analysis.

Suggested Citation

  • Gwendolyn Alexander Tedeschi, 2008. "Overcoming Selection Bias in Microcredit Impact Assessments: A Case Study in Peru," Journal of Development Studies, Taylor & Francis Journals, vol. 44(4), pages 504-518, April.
    • Handle: RePEc:taf:jdevst:v:44:y:2008:i:4:p:504-518
    DOI: 10.1080/00220380801980822
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/00220380801980822
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/00220380801980822?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to

    for a different version of it.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:jdevst:v:44:y:2008:i:4:p:504-518. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/FJDS20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.