Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/98214 
Year of Publication: 
2013
Series/Report no.: 
Economic Growth Center Discussion Paper No. 1026
Publisher: 
Yale University, Economic Growth Center, New Haven, CT
Abstract: 
Theory and evidence have raised concerns that microcredit does more harm than good, particularly when offered at high interest rates. We use a clustered randomized trial, and household surveys of eligible borrowers and their businesses, to estimate impacts from an expansion of group lending at 110% APR by the largest microlender in Mexico. Average effects on a rich set of outcomes measured 18-34 months post-expansion suggest some good and little harm. Other estimators identify heterogeneous treatment effects and effects on outcome distributions, but again yield little support for the hypothesis that microcredit causes harm.
Subjects: 
microcredit
microcredit impact
microentrepreneurship
Compartamos Banco
JEL: 
D12
D22
G21
O12
Document Type: 
Working Paper

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