Credit

Big Loans to Small Businesses: Predicting Winners and Losers in an Entrepreneurial Lending Experiment

We experimentally study the impact of substantially larger enterprise loans, in collaboration with an Egyptian lender. Larger loans generate small average impacts, but machine learning using psychometric data reveals dramatic heterogeneity.

Working Paper
20 Sep 2021

Microfinance

Microfinance has become a widely used tool to provide credit to areas and populations that traditionally lack access to conventional banking services.

VoxDevLit
10 May 2021

Skin in the Game: Microequity and Mentorship for Online Freelancing-based Microentrepreneurs in Bangladesh

In this pilot project, we demonstrate the exciting potential of online freelancing for improving the incomes of poor youth in rural Bangladesh.

Research Note
23 Apr 2021

Repayment Flexibility and Risk Taking: Experimental Evidence from Credit Contracts

A widely held view is that small firms in developing countries are prevented from making profitable investments by lack of access to credit and insurance markets. One solution is to provide repayment flexibility in credit contracts.

Working Paper
1 Apr 2021

Distinguishing Constraints on Financial Inclusion and Their Impact on GDP, TFP, and Inequality

A general equilibrium model featuring multiple realistic sources of financial frictions is developed to study how different constraints interact in equilibrium.

Journal Article
1 Jan 2021

Microfinance, Microentrepreneurship and Misallocation

This project evaluates to what extent heterogeneity in the take-up of microfinance and heterogeneity in its impacts on entrepreneurs explain the impact of microfinance on allocative inefficiency within occupational choice and investments.

Research Project
1 Jan 2021

Loan Contract Structure and Adverse Selection: Survey Evidence from Uganda

While adverse selection is an important theoretical explanation for credit rationing it is difficult to quantify empirically.

Journal Article
1 Apr 2020

Financial deepening through loan pricing transparency and its impacts

This project investigates the role of access to comparative loan information in consumer borrowing decisions, and how providing easy-to-process comparative information improves decision making.

Research Project
1 Aug 2019

Information Sharing in Trade Credit Markets: Evidence from Kenyan Retail Shops

In developing countries financial frictions hinder firm growth. Credit constraints result from poor contract enforcement and asymmetric information in the credit market.

Working Paper
19 May 2019

Sell Low and Buy High: Arbitrage and Local Price Effects in Kenyan Markets

Large and regular seasonal price fluctuations in local grain markets appear to offer African farmers substantial intertemporal arbitrage opportunities, but these opportunities remain largely unexploited.

Journal Article
1 May 2019

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