The Impact of Credit on Village Economies

A-Tier
Journal: American Economic Journal: Applied Economics
Year: 2012
Volume: 4
Issue: 2
Pages: 98-133

Score contribution per author:

2.011 = (α=2.01 / 2 authors) × 2.0x A-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

This paper evaluates the short- and longer term impact of Thailand's "Million Baht Village Fund" program, among the largest scale government microfinance iniatives in the world, using pre- and post-program panel data and quasi-experimental cross-village variation in credit per household. We find that the village funds have increased total short-term credit, consumption, agricultural investment, and income growth (from business and labor), but decreased overall asset growth. We also find a positive impact on wages, an important general equilibrium effect. The findings are broadly consistent qualitatively with models of credit-constrained household behavior and models of intermediation and growth. (JEL D14, G21, O12, O16, O18)

Technical Details

RePEc Handle
repec:aea:aejapp:v:4:y:2012:i:2:p:98-133
Journal Field
General
Author Count
2
Added to Database
2026-01-25