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dc.contributor.authorBanerjee, Abhijit
dc.contributor.authorDuflo, Esther
dc.contributor.authorHornbeck, Richard
dc.date.accessioned2019-10-30T13:26:07Z
dc.date.available2019-10-30T13:26:07Z
dc.date.issued2018-09
dc.date.submitted2018-03
dc.identifier.issn0013-0427
dc.identifier.urihttps://hdl.handle.net/1721.1/122666
dc.description.abstractRandomized controlled trials have found only modest effects of microfinance, but these studies focus on new clients. Existing estimates may thus understate ongoing gains for more experienced borrowers and the longer-run potential of microfinance. We estimate impacts of microfinance on experienced borrowers, using an episode when a microfinance institution modestly increased existing clients’ fees in randomly selected villages (in exchange for a mandatory health insurance policy that turned out to be useless). This increase in fees led to a 22 percentage point decline in loan renewal in treatment villages (95% confidence interval: 16 to 27), compared to control villages where the policy was not introduced. Using this randomly generated variation in microfinance participation among experienced borrowers, we find impacts of microfinance that are strikingly similar to previous estimates for new clients: neither business outcomes nor household consumption were affected, on average. Also, consistent with prior studies, we find significant impacts on business outcomes among clients who had started their businesses before microfinance entered the village (0.06 standard deviation decline in an index of business outcomes from the loss of microfinance, 95% confidence interval: −0.002 to −0.12). However, despite these measured losses, these clients were just as willing to give up microfinance.en_US
dc.description.sponsorshipNational Institutes of Health (U.S.) (Grant PO1 HD061315‐04)en_US
dc.language.isoen
dc.publisherWileyen_US
dc.relation.isversionofhttp://dx.doi.org/10.1111/ecca.12271en_US
dc.rightsCreative Commons Attribution-Noncommercial-Share Alikeen_US
dc.rights.urihttp://creativecommons.org/licenses/by-nc-sa/4.0/en_US
dc.sourceNBERen_US
dc.titleHow Much do Existing Borrowers Value Microfinance? Evidence from an Experiment on Bundling Microcredit and Insuranceen_US
dc.typeArticleen_US
dc.identifier.citationBanerjee, Abhijit et al. "How Much do Existing Borrowers Value Microfinance? Evidence from an Experiment on Bundling Microcredit and Insurance." Economica 85, 340 (October 2018): 671-700 © 2018 The London School of Economics and Political Scienceen_US
dc.contributor.departmentMassachusetts Institute of Technology. Department of Economicsen_US
dc.relation.journalEconomicaen_US
dc.eprint.versionOriginal manuscripten_US
dc.type.urihttp://purl.org/eprint/type/JournalArticleen_US
eprint.statushttp://purl.org/eprint/status/NonPeerRevieweden_US
dc.date.updated2019-10-21T15:49:12Z
dspace.date.submission2019-10-21T15:49:19Z
mit.journal.volume85en_US
mit.journal.issue340en_US


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