Microcredit impacts: Evidence from a Randomized Microcredit Program Placement Experiment by Compartamos Banco

Manuela Angelucci, Dean Karlan, Jonathan Zinman

Research output: Contribution to journalArticlepeer-review

115 Scopus citations

Abstract

We use a clustered randomized trial, and over 16,000 household surveys, to estimate impacts at the community level from a group lending expansion at 110 percent APR by the largest microlender in Mexico. We find no evidence of transformative impacts on 37 outcomes (although some estimates have large confidence intervals), measured at a mean of 27 months post-expansion, across 6 domains: microentrepreneurship, income, labor supply, expenditures, social status, and subjective well-being. We also examine distributional impacts using quantile regressions, given theory and evidence regarding negative impacts from borrowing at high interest rates, but do not find strong evidence for heterogeneity.

Original languageEnglish (US)
Pages (from-to)151-182
Number of pages32
JournalAmerican Economic Journal: Applied Economics
Volume7
Issue number1
DOIs
StatePublished - 2015

ASJC Scopus subject areas

  • Economics, Econometrics and Finance(all)

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