nep-mfd New Economics Papers
on Microfinance
Issue of 2017‒11‒26
two papers chosen by
Olivier Dagnelie
Université de Caen

  1. Synopsis: How should rural financial cooperatives be best organized? Evidence from Ethiopia By Abay, Kibrom A.; Koru, Bethlehem; Abate, Gashaw T.; Berhane, Guush
  2. Long-Run Consequences of Health Insurance Promotion: Evidence from a Field Experiment in Ghana By Asuming, Patrick Opoku; Kim, Hyuncheol Bryant; Sim, Armand

  1. By: Abay, Kibrom A.; Koru, Bethlehem; Abate, Gashaw T.; Berhane, Guush
    Abstract: What is the optimal size and composition of rural financial cooperatives (RFCs)? With this broad question in mind, we characterize alternative formations of RFCs and the implications of each in improving the access of rural households to financial services, including savings, credit, and insurance services. We find that some features of RFCs have varying implications for delivering various financial services. The size of RFCs is found to have a nonlinear relationship with the various financial services RFCs provide. We also show that compositional heterogeneity among members, including diversity in wealth, is associated with higher access to credit services, while this has limited effects on the savings behavior of members. Similarly, social cohesion among members is strongly associated with higher access to financial services. These empirical descriptions suggest that the optimal size and composition of RFCs may vary across the different domains of financial services that they are designed to facilitate. This evidence provides suggestive insights on how to ensure financial inclusion among smallholders, a priority among agricultural sector policy makers in developing countries, including Ethiopia. The results also provide some insights for the design of rural microfinance operations as they seek to satisfy members’ demand for various financial services.
    Keywords: economic growth; economic development; livestock; livestock production; smallholders; market access; rural communities; households; production; grain crops marketing; livelihoods,
    Date: 2017
    URL: http://d.repec.org/n?u=RePEc:fpr:essprn:66&r=mfd
  2. By: Asuming, Patrick Opoku (University of Ghana); Kim, Hyuncheol Bryant (Cornell University); Sim, Armand (Cornell University)
    Abstract: We study the long-run impacts of health insurance promotion in Northern Ghana. We randomly provide three overlapping interventions to promote enrollment: subsidy, information campaign, and convenient sign-up option, with follow-up surveys seven months and three years after the initial intervention. Our interventions, especially the subsidy, promote enrollment and healthcare service utilization in the short and long runs. We also find short-run health status improvements, which disappear in the long run. We find suggestive evidence on decreased investment in disease prevention and selection that may help explain this pattern of health status changes.
    Keywords: health insurance, sustainability, moral hazard, selection, screening effect, randomized experiments
    JEL: I1 O12
    Date: 2017–10
    URL: http://d.repec.org/n?u=RePEc:iza:izadps:dp11117&r=mfd

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