We’ve gotten a bit of track with the monthly links I like post. I’ll blame graduate school.
Ok, enough with the excuses, here are January’s top links (according to me).
It would be a shame not to point to the six (!) field experiments on the effectiveness of microcredit published this past month in the American Economic Journal: Applied Economics (all open access, too! So no excuses!).
Summary: Does microcredit work? Well, it depends, but probably not as well as you thought. Quoting from the introduction written by Abhijeet Banerjee, Dean Karlan, and Jonathan Zinman, the most consistent finding across all six studies is the “lack of evidence of transformative effects on the average borrower”. As Justin Sandefur and Lant Pritchett point out there is quite a bit of heterogeneity in these studies and we should be careful what we infer from the results.