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on Microfinance |
| By: | Helke Waelde (Department of Economics, Johannes Gutenberg-Universitaet Mainz, Germany) |
| Abstract: | These days it has been witnessed, that banks other individual loans instead of group loans and develop products based on individual liability in developing coun- tries. In order to study this surprising turn, we expand the conventional approach on decision making of individuals. A social prestige function is introduced that re- ‡ects the non-monetary impacts of group membership on the individual and on her decisions. If a borrower possesses more than a critical level of wealth, it is optimal for her to switch to individual borrowing. From a welfare perspective, a mixture of individual and group loans is desirable. However, the average borrower switches from group to individual lending too soon. |
| JEL: | E43 E52 E58 D44 |
| Date: | 2011–03–07 |
| URL: | http://d.repec.org/n?u=RePEc:jgu:wpaper:1106&r=mfd |
| By: | Tinh Doan (University of Waikato); John Gibson (University of Waikato); Mark Holmes (University of Waikato) |
| Abstract: | Quantile Treatment Effects are estimated to study the impacts of household credit access on health spending by poor households in one District of Ho Chi Minh City, Vietnam. There are significant positive effects of credit on the health budget shares of households with low healthcare spending. In contrast, when an Average Treatment Effect is estimated, there is no discernible impact of credit access on health spending. Hence, typical approaches to studying heterogeneous credit impacts that only consider between group differences and not differences over the distribution of outcomes may miss some heterogeneity of interest to policymakers. |
| Keywords: | credit; healthcare budget share; quantile treatment effects; Vietnam |
| JEL: | C21 I19 |
| Date: | 2011–02–18 |
| URL: | http://d.repec.org/n?u=RePEc:wai:econwp:11/01&r=mfd |
| By: | Pearce, Douglas |
| Abstract: | The paper provides an assessment of the state of financial inclusion in the MENA region, and identifies constraints, opportunities, and priorities for significantly improving access to finance. Practical recommendations for improving financial inclusion are outlined. Firstly, governments could agree a Financial Inclusion Strategy that is underpinned by improved data, that has both public and private sector commitment, and that scales up financial access on a large scale, principally through bank accounts. Secondly, the regulators should provide a legal and supervisory framework that enables access to finance to be expanded primarily through banks, but with regulatory space for the use of agents, mobile phone technology, and for a finance company model for microcredit and leasing. Interest rate caps on microloans should be removed, and instead consumer protection and supervisory capacity for microfinance should be strengthened, while prudent competition between financial service providers should be promoted. Thirdly, financial infrastructure needs to continue to be a focus area, and in particular credit information and secured transactions. Finally, barriers to the growth of Islamic financial services should be removed so that they can better meet market demand. |
| Keywords: | Access to Finance,Financial Literacy,Banks&Banking Reform,Debt Markets,Emerging Markets |
| Date: | 2011–03–01 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wbrwps:5610&r=mfd |