Essays on Vulnerability, Microfinance and Entrepreneurship

This dissertation explores the problems of low productivity in the microenterprise sector and of low formal credit use, principally microfinance, by poor households. I propose vulnerability to risk, defined as the inability to smooth consumption across negative income shocks, as a new explanation for both phenomena. I argue that limited ability to manage…


Chapter I: Introduction and Background
Chapter II: Vulnerability as a Determinant of Microenterprise Choice
1. Introduction
2. Theoretical Model
3. Description of the Data
3.1. Measuring Allocation to the Risky Enterprise
3.2. Measuring Vulnerability
3.3. Measuring Skill
4. Determinants of Project Choice
4.1. Microenterprise Income
4.2. Primary Enterprise Sales
5. Implications of Microfinance
5.1. Differences in Microenterprise Income
5.2. Differences in Primary Enterprise Sales
6. Conclusion
Chapter III: Vulnerability as a Determinant of Microfinance Selection
1. Introduction
2. Theoretical Model
2.1. Setup
2.2. Vulnerability, Consumption Credit and No Default
2.3. Entrepreneur’s Decisions
3. Description of Data
3.1. Microfinance and Project Choice
3.2. Alternative Hypotheses of Microfinance Selection: Supply
3.3. Vulnerability and Skill Measures
4. Empirical Estimation of Microfinance Selection: Complete Sample
5. Empirical Estimation of Microfinance Selection: Balanced Panel
5.1 Empirical Analysis of Microfinance Selection, 1999
5.2. Increased Realization of Negative Shocks
6. Conclusion
Chapter IV: How Representative are the ACP data?
1. Introduction
2. Observable Household and Enterprise Characteristics
2.1 Incomes and Wealth
2.2. Other Household Characteristics
2.3 Enterprise Characteristics
2.4. Vulnerability and Skill Measures
2.5. Conclusions about Comparability
3. Formal Credit Use
4. Conclusion

Author: Pearlman, Sarah

Source: University of Maryland

Download URL 2: Visit Now

Leave a Comment