Abstract

http://ssrn.com/abstract=1395349
 
 

References (41)



 
 

Citations (15)



 


 



A Structural Evaluation of a Large-Scale Quasi-Experimental Microfinance Initiative


Joseph P. Kaboski


Ohio State University (OSU) - Department of Economics

Robert M. Townsend


MIT - Department of Economics

December 1, 2008

MIT Department of Economics Working Paper No. 09-12

Abstract:     
This paper uses a structural model to understand, predict, and evaluate the impact of an exogenous micro credit intervention program, the Thai Million Baht Village Fund program. We model household decisions in the face of borrowing constraints, income uncertainty, and high-yield indivisible investment opportunities. After estimation of parameters using pre-program data, we evaluate the model’s ability to predict and interpret the impact of the village fund intervention. Simulated predictions from the model mirror actual data in reproducing a greater increase in consumption than credit, which is interpreted as evidence of credit constraints. A cost-benefit analysis using the model indicates that some households value the program much more than its per household cost, but overall the program costs 20 percent more than the sum of these benefits.

Number of Pages in PDF File: 59

Keywords: microfinance, buffer stock, credit constraint

JEL Classification: O1, E2

working papers series


Download This Paper

Date posted: April 30, 2009  

Suggested Citation

Kaboski, Joseph P. and Townsend, Robert M., A Structural Evaluation of a Large-Scale Quasi-Experimental Microfinance Initiative (December 1, 2008). MIT Department of Economics Working Paper No. 09-12. Available at SSRN: http://ssrn.com/abstract=1395349 or http://dx.doi.org/10.2139/ssrn.1395349

Contact Information

Joseph P. Kaboski
Ohio State University (OSU) - Department of Economics ( email )
Dept of Economics
Columbus, OH 43210-1172
United States
Robert M. Townsend (Contact Author)
MIT - Department of Economics ( email )
Bldg. E52-252c
50 Memorial Drive
Cambridge, MA 02142
United States
617-452-3722 (Phone)
617-253-1330 (Fax)
Feedback to SSRN


Paper statistics
Abstract Views: 633
Downloads: 122
Download Rank: 130,695
References:  41
Citations:  15
Paper comments
No comments have been made on this paper

© 2014 Social Science Electronic Publishing, Inc. All Rights Reserved.  FAQ   Terms of Use   Privacy Policy   Copyright   Contact Us
This page was processed by apollo6 in 0.453 seconds