Does microcredit increase borrowers’ savings? A fuzzy regression discontinuity design approach

Autor:	Omar Farooq, Khondker Aktaruzzaman
Rok vydání:	2016
Předmět:	Economics and Econometrics Labour economics Discontinuity (geotechnical engineering) Fuzzy regression 050204 development studies 0502 economics and business 05 social sciences Econometrics Economics Regression discontinuity design Conditional probability distribution 050207 economics Externality
Zdroj:	International Review of Applied Economics. 31:495-507
ISSN:	1465-3486 0269-2171
DOI:	10.1080/02692171.2016.1263607
Popis:	Microcredit has expanded rapidly in recent years but its effect at the household level is still controversial. This paper uses a unique data-set collected from 69 villages in Bangladesh to estimate the effect of participation in microcredit programs on household savings. A regression discontinuity design (RDD) is used to identify the credit effect. To justify the validity of RDD, we test the discontinuities in the conditional density of the forcing variable (in our case, household land), as suggested by McCrary. We do not find any substantial evidence of manipulation of forcing variable at the threshold to invalidate the RDD. Our results show that access to credit increases savings of the borrowers.
Databáze:	OpenAIRE
Externí odkaz:	https://explore.openaire.eu/search/publication?articleId=doi_________::753935e64ca7382602f0496651524d69 https://doi.org/10.1080/02692171.2016.1263607 Zobrazit plný text záznamu