Journal
AMERICAN ECONOMIC JOURNAL-APPLIED ECONOMICS
Volume 7, Issue 1, Pages 1-21Publisher
AMER ECONOMIC ASSOC
DOI: 10.1257/app.20140287
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Causal evidence on microcredit impacts informs theory, practice, and debates about its effectiveness as a development tool. The six randomized evaluations in this volume use a variety of sampling, data collection, experimental design, and econometric strategies to identify causal effects of expanded access to microcredit on borrowers and/or communities. These methods are deployed across an impressive range of locations-six countries on four continents, urban and rural areas-borrower characteristics, loan characteristics, and lender characteristics. Summarizing and interpreting results across studies, we note a consistent pattern of modestly positive, but not transformative, effects. We also discuss directions for future research.
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