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

"A Structural Evaluation of a Large-Scale Quasi-Experimental Microfinance Initiative." Joseph Kaboski and Robert M. Townsend. Econometrica 79(5), September 2011: 1357-1406. ABSTRACT PDF

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2011

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This paper understands, predicts, and evaluates the Thai Million Baht Village Fund, a microcredit intervention program launched in Thailand in 2001.  Using pre-program data, the authors are able to study the impact of the fund, using a structural model and a cost-benefit analysis.  The paper finds a greater increase in consumption than credit and shows the program costs 20% more than the sum of its benefits.