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Microcredit and poverty. An overview of the principal statistical methods used to measure the program net impacts


  • Orso, Cristina


The purpose of this paper is to examine di¤erent econometric approaches aiming to evaluate the impact of microcredit on poverty. Starting with a brief description of microcredit and the most common kinds of statistical biases connected to these studies, I describe the principal characteristics of Non-Randomized and Randomized approaches, in order to highlight strengths and weaknesses concerning the application of such methodologies.

Suggested Citation

  • Orso, Cristina, 2011. "Microcredit and poverty. An overview of the principal statistical methods used to measure the program net impacts," POLIS Working Papers 154, Institute of Public Policy and Public Choice - POLIS.
  • Handle: RePEc:uca:ucapdv:154

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    References listed on IDEAS

    1. Esther Duflo & Rema Hanna, 2005. "Monitoring Works: Getting Teachers to Come to School," Working Papers id:301, eSocialSciences.
    2. Karlan, Dean S. & Zinman, Jonathan, 2009. "Expanding Microenterprise Credit Access: Using Randomized Supply Decisions to Estimate the Impacts in Manila," CEPR Discussion Papers 7396, C.E.P.R. Discussion Papers.
    3. M. M. Pitt & S. R. Khandker, 2002. "Credit Programmes for the Poor and Seasonality in Rural Bangladesh," Journal of Development Studies, Taylor & Francis Journals, vol. 39(2), pages 1-24.
    4. Pascaline Dupas & Jonathan Robinson, 2013. "Savings Constraints and Microenterprise Development: Evidence from a Field Experiment in Kenya," American Economic Journal: Applied Economics, American Economic Association, vol. 5(1), pages 163-192, January.
    5. Nava Ashraf & Dean Karlan & Wesley Yin, 2006. "Tying Odysseus to the Mast: Evidence From a Commitment Savings Product in the Philippines," The Quarterly Journal of Economics, Oxford University Press, vol. 121(2), pages 635-672.
    6. Mark M. Pitt & Shahidur R. Khandker, 1998. "The Impact of Group-Based Credit Programs on Poor Households in Bangladesh: Does the Gender of Participants Matter?," Journal of Political Economy, University of Chicago Press, vol. 106(5), pages 958-996, October.
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    8. Shahidur R. Khandker, 2005. "Microfinance and Poverty: Evidence Using Panel Data from Bangladesh," World Bank Economic Review, World Bank Group, vol. 19(2), pages 263-286.
    9. Pitt, Mark M & Khandker, Shahidur R & Cartwright, Jennifer, 2006. "Empowering Women with Micro Finance: Evidence from Bangladesh," Economic Development and Cultural Change, University of Chicago Press, vol. 54(4), pages 791-831, July.
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    13. Coleman, Brett E., 1999. "The impact of group lending in Northeast Thailand," Journal of Development Economics, Elsevier, vol. 60(1), pages 105-141, October.
    14. Nidhiya Menon, 2006. "Non-linearities in returns to participation in Grameen Bank programs," Journal of Development Studies, Taylor & Francis Journals, vol. 42(8), pages 1379-1400.
    15. Juan Jose Diaz & Sudhanshu Handa, 2006. "An Assessment of Propensity Score Matching as a Nonexperimental Impact Estimator: Evidence from Mexico’s PROGRESA Program," Journal of Human Resources, University of Wisconsin Press, vol. 41(2).
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    More about this item


    Microcredit; poverty; program impact; randomized approach; non-randomized approach.;

    JEL classification:

    • C54 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Quantitative Policy Modeling
    • C58 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Financial Econometrics

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