The DOI matches its Crossref record; 17 of the 17 references it cites were found in a registry or an index.
Experimental Evidence on Returns to Capital and Access to Finance in Mexico
Abstract
A strong theoretical argument for focusing on access to finance is that financial market imperfections can result in large inefficiencies, as firms with productive investment opportunities underinvest. Lack of access to finance is a frequent complaint of microenterprises, which account for a large share of employment in developing countries. However, assessing the extent to which a lack of capital affects their business profits is complicated by the fact that business investment is likely to be correlated with a host of unmeasured characteristics of the owner and firm, such as entrepreneurial ability and demand shocks. In a randomized experiment that gave cash and in-kind grants to small retail firms, providing an exogenous shock to capital, the shock generated large increases in profits, with the effects concentrated among firms that were more financially constrained. The estimated return to capital was at least 20–33 percent a month—three to five times higher than market interest rates.
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Cites
Morduch, J. (1999) · Journal of Economic Literature · doi:10.1257/jel.37.4.1569 · Cited by 2,360
(2006) · Choice Reviews Online · doi:10.5860/choice.43-3485 · Cited by 1,319
Returns to Capital in Microenterprises: Evidence from a Field Experiment*
de Mel, S., McKenzie, D., & Woodruff, C. (2008) · Quarterly Journal of Economics · doi:10.1162/qjec.2008.123.4.1329 · Cited by 1,015
Self-citationMorduch, J. (2000) · World Development · doi:10.1016/s0305-750x(99)00151-5 · Cited by 935
Expanding Credit Access: Using Randomized Supply Decisions to Estimate the Impacts
Karlan, D., & Zinman, J. (2010) · Review of Financial Studies · doi:10.1093/rfs/hhp092 · Cited by 896
Do Firms Want to Borrow More? Testing Credit Constraints Using a Directed Lending Program
Banerjee, A. V., & Duflo, E. (2014) · The Review of Economic Studies · doi:10.1093/restud/rdt046 · Cited by 757
Measuring microenterprise profits: Must we ask how the sausage is made?
de Mel, S., McKenzie, D. J., & Woodruff, C. (2009) · Journal of Development Economics · doi:10.1016/j.jdeveco.2008.01.007 · Cited by 367
Self-citationTreatment Effect Heterogeneity in Theory and Practice
Angrist, J. D. (2004) · The Economic Journal · doi:10.1111/j.0013-0133.2003.00195.x · Cited by 363
In Pursuit Of Balance: Randomization In Practice In Development Field Experiments
McKenzie, D., & Bruhn, M. (2008) · World Bank, Washington, DC eBooks · doi:10.1596/1813-9450-4752 · Cited by 335
Self-citationDo Entry Costs Provide an Empirical Basis for Poverty Traps? Evidence from Mexican Microenterprises
McKenzie, D. J., & Woodruff, C. (2006) · Economic Development and Cultural Change · doi:10.1086/505725 · Cited by 318
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Cited by
Returns to Capital in Microenterprises: Evidence from a Field Experiment*
de Mel, S., McKenzie, D., & Woodruff, C. (2008) · Quarterly Journal of Economics · doi:10.1162/qjec.2008.123.4.1329 · Cited by 1,015
Self-citationSavings Constraints and Microenterprise Development: Evidence from a Field Experiment in Kenya
Dupas, P., & Robinson, J. (2013) · American Economic Journal: Applied Economics · doi:10.1257/app.5.1.163 · Cited by 959
Do Firms Want to Borrow More? Testing Credit Constraints Using a Directed Lending Program
Banerjee, A. V., & Duflo, E. (2014) · The Review of Economic Studies · doi:10.1093/restud/rdt046 · Cited by 757
The Real Impact of Improved Access to Finance: Evidence from Mexico
BRUHN, M., & LOVE, I. (2014) · The Journal of Finance · doi:10.1111/jofi.12091 · Cited by 728
Why Don't the Poor Save More? Evidence from Health Savings Experiments
Dupas, P., & Robinson, J. (2013) · American Economic Review · doi:10.1257/aer.103.4.1138 · Cited by 683
Metadata
- Authors
- McKenzie, D., & Woodruff, C.
- Venue
- The World Bank Economic Review
- Publisher
- Oxford University Press (OUP)
- Published
- 2008-01-01
- Volume
- 22
- Issue
- 3
- Pages
- 457-482
- ISSN
- 0258-6770 (ISSN-L)
- 1564-698X
- OpenAlex
- W2021521964
- Cited by
- 385
- References
- 17
- FWCI
- 47.02
- Type
- journal article
- Language
- en
- Open access
- closed
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Contains information from the Semantic Scholar Academic Graph Datasets, made available under the ODC Attribution License (ODC-BY 1.0).
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