nep-mfd New Economics Papers
on Microfinance
Issue of 2012‒12‒15
three papers chosen by
Olivier Dagnelie
Instituto de Analisis Economico, CSIC

  1. La microfinance et son impact sur la pauvreté dans les pays en développement By Alyson Falcucci
  2. Signaling Credit-Worthiness: Land Titles, Banking Practices and Formal Credit in Indonesia By Paul Castãneda Dower; Elizabeth Potamites
  3. The value of customized insurance for farmers in rural Bangladesh: By Clarke, Danielle; Das, Narayan C.; de Nicola, Francesca; Hill, Ruth Vargas; Kumar, Neha; Mehta, Parendi

  1. By: Alyson Falcucci (USTV UFR SEG - Université Sud-Toulon-Var - UFR Sciences économiques et de gestion - Ministère de l'Enseignement Supérieur et de la Recherche Scientifique)
    Abstract: Présentation de la microfinance. Son fonctionnement, ses produits et ses principes, ainsi que l'effet qu'elle a eu sur la pauvreté dans les PED, autant positifs que limités.
    Keywords: microfinance, pauvreté, microcrédit, pays en développement
    Date: 2012–06–19
  2. By: Paul Castãneda Dower (New Economic School and the Center for Economic and Financial Research); Elizabeth Potamites
    Abstract: Many land titling programs have produced lackluster results in terms of achieving access to credit for the poor. This may re ect insufficient emphasis on local banking practices. Bankers commonly use methods other than collateral to ensure repayment, such as targeting borrower characteristics that, on average, improve repayment rates. Formal land titles can signal to the bank these important characteristics. Using a household survey from Indonesia, we provide evidence that formal land titles do have a positive and significant effect on access to credit and at least part of this effect is best interpreted as an improvement in information ows. This result stands in contrast to the prevailing notion that land titles only function as collateral. Analysts who neglect local banking practices may misinterpret the observed effect of systematic land titling programs on credit access because these programs tend to dampen the signaling value of formal land titles.
    Date: 2012–09
  3. By: Clarke, Danielle; Das, Narayan C.; de Nicola, Francesca; Hill, Ruth Vargas; Kumar, Neha; Mehta, Parendi
    Abstract: Farmers in rural Bangladesh face multiple sources of uninsured risk to agricultural production and household assets. In this paper, we present results from an experimental demand-elicitation exercise in rural Bangladesh to shed light on smallholder farmers’ interest in formal insurance products. We propose a suite of insurance and savings products, and we randomly vary the price of one insurance option (area-yield insurance) and the presence of one of the savings options (group savings). Consistent with economic theory, farmers buy more of the insurance products that cover the risks they primarily face. However, because farmers are subject to a variety of risks, they do not focus on only one type of insurance; instead, they evenly split their endowment between life and disability insurance and agricultural insurance. Demand for area-yield insurance falls with price; we also observe important cross-price elasticities with other insurance products. The presence of group savings does not alter demand for insurance, though group savings is found to be a particularly popular risk management tool, especially when decisions are made in groups.
    Keywords: Risk, Insurance, demand, Elasticity, Decision-making, rural areas,
    Date: 2012

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