nep-mfd New Economics Papers
on Microfinance
Issue of 2013‒11‒29
three papers chosen by
Olivier Dagnelie
Instituto de Analisis Economico, CSIC

  1. Follow the Money: Methods for Identifying Consumption and Investment Responses to a Liquidity Shock By Dean Karlan; Adam Osman; Jonathan Zinman
  2. Role of regulation in micro finance: application of the Micro Savings Requirement Scheme in informal sectors By Marianne, Roedl
  3. Determinantes de la inclusion financiera en Peru By Noelia Camara; Ximena Pena; David Tuesta

  1. By: Dean Karlan (Economic Growth Center, Yale University); Adam Osman (Department of Economics, Yale University); Jonathan Zinman (Dartmouth College)
    Abstract: Identifying the impacts of liquidity shocks on spending decisions is difficult methodologically but important for theory, practice, and policy. Using seven different methods on microenterprise loan applicants, we find striking results. Borrowers report uses of loan proceeds strategically, and more generally their reporting depends on elicitation method. Borrowers also interpret loan use questions differently than the key counterfactual: spending that would not have occurred sans loan. We identify the counterfactual using random assignment of loan approvals and short-run follow-up elicitation of major household and business cash outflows, and estimate that about 100% of loan-financed spending is on business inventory.
    Keywords: loan use, consumption, investment, liquidity constraint, liquidity shock, fungibility, microcredit, microenterprise
    JEL: D12 D22 D92 G21 O12 O16
    Date: 2013–11
  2. By: Marianne, Roedl
    Abstract: An innovative aspect of this paper is evidenced through its recommendation of the Micro-Savings Requirement Scheme - which offers numerous benefits – as will be highlighted in this paper. Furthermore, the paper not only addresses how linkages, direct and facilitating linkages, can benefit microfinance institutions – and particularly in jurisdictions where the Savings Group Outreach involvement is particularly low, but also illustrates ways and means whereby group lending and other more recent innovative methods used by micro lenders to secure repayments, could increase the desired effects, efficiency and impact of microfinance in selected jurisdictions. In so doing, it addresses some of the existing and persisting problems of micro finance in rural areas.
    Keywords: microfinance; regulation; agency theory; Micro-Savings Requirement Scheme; Africa; Asia; Latin America
    JEL: D82 G2 G21 K2
    Date: 2013–11–03
  3. By: Noelia Camara; Ximena Pena; David Tuesta
    Abstract: Este estudio ofrece una primera aproximacion cuantitativa a los determinantes de la inclusion financiera en Peru a partir de microdatos de encuestas. A traves de correlaciones significativas, se identifican aquellas caracteristicas socioeconomicas que podrian afectar a la inclusion (exclusion) financiera para hogares y empresas. Para aquellos ndividuos no bancarizados, se analiza la sensibilidad a algunas barreras con el fin de determinar su importancia y los factores por los que podrian verse afectadas. Los resultados muestran que aquellos grupos tradicionalmente mas vulnerables (mujeres, individuos que viven en areas rurales y jovenes) son aquellos que encuentran mayores dificultades para acceder al sistema financiero formal. Respecto a los productos financieros, el credito o las hipotecas parecen ser un reclamo mas importante para la bancarizacion que los productos de ahorro. Para las empresas, el tema de la formalidad y la educacion destacan como factores significativos para el acceso a la banca. Finalmente, para aquellos individuos excluidos del sistema financiero se observa que factores tales como edad, genero, educacion y nivel de ingreso tiene un efecto significativo en la sensibilidad ante las barreras existentes para acceder a la banca. Una primera aproximacion a la identificacion de estas caracteristicas individuales y sus efectos sobre la inclusion (exclusion) financiera permite un mayor conocimiento de las limitaciones para el uso de los servicios financieros formales. Es fundamental tener en cuenta estas cuestiones a la hora de abordar el diseño de politicas economicas que fomenten sistemas financieros mas inclusivos.
    Keywords: inclusion financiera, instituciones financieras, barreras, finanzas personales
    JEL: D14 G21
    Date: 2013–11

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