Estimating the Impact of Microcredit on Those Who Take It Up: Evidence from a Randomized Experiment in Morocco
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Author(s)
Crepon, Bruno
Devoto, Florencia
Duflo, Esther
Pariente, William
Date Issued
January 2015
Journal
American Economic Journal: Applied Economics
Publisher
American Economic Association
Citation
Crepon, Bruno, Florencia Devoto, Esther Duflo, and William Pariente. “ Estimating the Impact of Microcredit on Those Who Take It Up: Evidence from a Randomized Experiment in Morocco.” American Economic Journal: Applied Economics 7, no. 1 (January 2015): 123–150. © 2015 American Economic Association
Version
Final published version
Abstract
We report results from a randomized evaluation of a microcredit program introduced in rural areas of Morocco in 2006. Thirteen percent of the households in treatment villages took a loan, and none in control villages did. Among households identified as more likely to borrow, microcredit access led to a significant rise in investment in assets used for self-employment activities, and an increase in profit, but also to a reduction in income from casual labor. Overall there was no gain in income or consumption. We find suggestive evidence that these results are mainly driven by effects on borrowers, rather than by externalities.
MIT Department
Massachusetts Institute of Technology. Department of Economics
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Article is made available in accordance with the publisher's policy and may be subject to US copyright law. Please refer to the publisher's site for terms of use.
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DOI of Published Version
https://doi.org/10.1257/app.20130535
