Demasking the impact of microfinance
We reconsider data from a randomized control trial study in India. The data reveal the impact of a microloan program. We extend the often used randomized impact evaluation and di¤erence-in-di¤erence approach by quantile regression and the consideration of the quantile treatment effects. The use of additional, more advanced, evaluation methods allows a more detailed consideration of borrowers at the lower and at the upper end of the wealth distribution. We find a strong negative and signi.cant time-trend. Furthermore, we observe a negative impact of the provi- sion of microfinance loans such that the overall impact is even more negative. This is particularly well seen for entrepreneurs in the lower and in the higher quantiles. As we learn that poor entrepreneurs use microloans for consumption, we doubt that micro.nance is the right instrument for them. The data suggest that providing microloans for average entrepreneurs, who can hire very poor entrepreneurs, might be an effective solution for that dilemma.
|Date of creation:||09 Nov 2011|
|Date of revision:||09 Nov 2011|
|Contact details of provider:|| Postal: |
Phone: +49 6131 39-22223
Web page: http://wiwi.uni-mainz.de/index.html
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Bitler, Marianne P. & Gelbach, Jonah B. & Hoynes, Hilary W., 2008.
"Distributional impacts of the Self-Sufficiency Project,"
Journal of Public Economics,
Elsevier, vol. 92(3-4), pages 748-765, April.
- Marianne P. Bitler & Jonah B. Gelbach & Hilary W. Hoynes, 2005. "Distributional Impacts of the Self-Sufficiency Project," NBER Working Papers 11626, National Bureau of Economic Research, Inc.
- Hilary W. Hoynes & Marianne P Bitler & Jonah B. Gelbach, 2005. "Distributional Impacts of the Self-Sufficiency Project," Working Papers 530, University of California, Davis, Department of Economics.
- Alberto Abadie & Alexis Diamond & Jens Hainmueller, 2007.
"Synthetic Control Methods for Comparative Case Studies: Estimating the Effect of California's Tobacco Control Program,"
NBER Technical Working Papers
0335, National Bureau of Economic Research, Inc.
- Alberto Abadie & Alexis Diamond & Jens Hainmueller, 2007. "Synthetic Control Methods for Comparative Case Studies: Estimating the Effect of California's Tobacco Control Program," NBER Working Papers 12831, National Bureau of Economic Research, Inc.
- Markus Frölich & Blaise Melly, 2007.
"Unconditional quantile treatment effects under endogeneity,"
CeMMAP working papers
CWP32/07, Centre for Microdata Methods and Practice, Institute for Fiscal Studies.
- Markus FrÃ¶lich & Blaise Melly, 2013. "Unconditional Quantile Treatment Effects Under Endogeneity," Journal of Business & Economic Statistics, Taylor & Francis Journals, vol. 31(3), pages 346-357, July.
- Frölich, Markus & Melly, Blaise, 2008. "Unconditional Quantile Treatment Effects under Endogeneity," IZA Discussion Papers 3288, Institute for the Study of Labor (IZA).
- Shahidur R. Khandker & Zaid Bakht & Gayatri B. Koolwal, 2009.
"The Poverty Impact of Rural Roads: Evidence from Bangladesh,"
Economic Development and Cultural Change,
University of Chicago Press, vol. 57(4), pages 685-722, 07.
- Khandker, Shahidur R. & Bakht, Zaid & Koolwal, Gayatri B., 2006. "The poverty impact of rural roads : evidencefrom Bangladesh," Policy Research Working Paper Series 3875, The World Bank.
- Ghatak, Maitreesh, 1999. "Group lending, local information and peer selection," Journal of Development Economics, Elsevier, vol. 60(1), pages 27-50, October.
- Sergio Firpo, 2007.
"Efficient Semiparametric Estimation of Quantile Treatment Effects,"
Econometric Society, vol. 75(1), pages 259-276, 01.
- Sergio Firpo, 2004. "Efficient Semiparametric Estimation of Quantile Treatment Effects," Econometric Society 2004 North American Summer Meetings 605, Econometric Society.
- Shahidur R. Khandker & Gayatri B. Koolwal & Hussain A. Samad, 2010. "Handbook on Impact Evaluation : Quantitative Methods and Practices," World Bank Publications, The World Bank, number 2693.
- Abrevaya, Jason & Dahl, Christian M, 2008. "The Effects of Birth Inputs on Birthweight," Journal of Business & Economic Statistics, American Statistical Association, vol. 26, pages 379-397.
When requesting a correction, please mention this item's handle: RePEc:jgu:wpaper:1115. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Lehrstuhl Wälde)
If references are entirely missing, you can add them using this form.