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on Microfinance |
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Issue of 2025–02–17
three papers chosen by Marco Novarese, Università degli Studi del Piemonte Orientale |
| By: | Berendson, Ricardo Morel; Gassmann, Franziska (RS: GSBE UM-BIC, RS: GSBE MORSE, Maastricht Graduate School of Governance, RS: GSBE MGSoG, RS: UNU-MERIT Theme 2, RS: UNU-MERIT Theme 6); Martorano, Bruno (Maastricht Graduate School of Governance, RS: GSBE MGSoG); Tirivayi, Nyasha J.; Kamau, John |
| Abstract: | We study the impact of an innovative program that combines microfinance with farming extension services on food security outcomes in rural South-Western Uganda. For this purpose, we use experimental data and monthly panel data collected over two years to monitor seasonal changes. The results suggest that neither the combined approach of microfinance with farming extension services nor standalone microfinance demonstrated significant effectiveness in reducing food insecurity throughout seasons in the period of analysis. Households in both treatment groups experienced a reduction of dietary diversity mainly during land preparation approximately two years after the start of the interventions. Heterogeneous analysis revealed that households receiving MFM services and having better access to markets experienced occasional improvements in food security. Finally, households with higher food poverty levels in the MFM group experienced some improvements in food security, while those in the Microfinance group encountered sporadic negative outcomes in terms of dietary diversity. |
| JEL: | G21 I30 Q16 Q18 O13 |
| Date: | 2024–06–19 |
| URL: | https://d.repec.org/n?u=RePEc:unm:unumer:2024014 |
| By: | Karachiwalla, Naureen; Gilligan, Daniel O.; Kurdi, Sikandra |
| Abstract: | Cash transfer programs are often effective at increasing household consumption in their early years, but impacts become more nuanced over time as the use of transfers varies. This paper examines the medium-term effects of Egypt’s f lagship cash transfer program, Takaful, on several measures of household wellbeing using a regression discontinuity (RD) design. Findings reveal no significant impacts on household consumption (total, food or non-food), but notable decreases in monthly wage income that are comparable in magnitude to the average monthly transfer. Employment patterns are suggestive of a decrease in hours worked in formal labour among men. There are positive effects on asset ownership, particularly productive assets, indicating a shift toward longer-term investments. Reductions in informal debt suggest improved financial health among beneficiaries and increases in enrollment in primary and preparatory school suggest increased human capital investment as well. These results underscore the potential of cash transfer programs to foster economic stability and investments in the future, even in the absence of significant immediate consumption effects. |
| Keywords: | cash transfers; consumption; assets; investment; schools; health; Africa; Northern Africa; Egypt |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:fpr:menawp:45 |
| By: | Ignacio Belloc (University of Zaragoza); José Alberto Molina (Departamento de Análisis Económico, Universidad de Zaragoza) |
| Abstract: | This paper examines how expecting to receive an inheritance impacts household savings decisions. Life-cycle consumption models indicate that the expectation of inheriting should reduce current savings plans for forward-thinking consumers. We investigate how inheritance expectations shape savings behavior within the household, considering factors such as liquidity constraints and education. To do so, we use household fixed effects to account for time-invariant factors and exploit within-household variation over time by using panel data from the Japanese Panel Survey of Consumers (2003-2019), which provides individual-level information and overcomes endogeneity concerns commonly present in cross-sectional studies. Our findings reveal that households adjust their current savings in anticipation of receiving future inheritances. Specifically, men decrease their current savings by an average of 5.4 percent if they expect to receive an inheritance in the future. Additionally, we find more pronounced changes in savings among households with higher levels of education and incomes, which are less likely to face liquidity constraints. These findings inform inheritance fiscal policies, such as inheritance taxes, revealing that households consider the expectation of inheriting in the future for current saving decisions. |
| Keywords: | intra-household allocation; savings; inheritance expectations; panel data; JPSC |
| JEL: | D14 D15 D84 |
| Date: | 2025–03–05 |
| URL: | https://d.repec.org/n?u=RePEc:boc:bocoec:1084 |