Microenterprise growth and the flypaper effect: Evidence from a randomized experiment in Ghana

Journal of Development Economics

Volumn 106, Issue , 2014, Pages 211-226

  Fafchamps, Marcel ^a   McKenzie, David ^b   Quinn, Simon ^a   Woodruff, Christopher ^c  

^a UNIVERSITY OF OXFORD   (United Kingdom)

^b WORLD BANK   (United States)

^c UNIVERSITY OF WARWICK   (United Kingdom)

Author keywords

Asset integration; Conditionality; Ghana; Microenterprises

Indexed keywords

BUSINESS DEVELOPMENT; INDUSTRIAL DEVELOPMENT; INDUSTRIAL INVESTMENT; INDUSTRIAL PERFORMANCE; MICROENTERPRISE; PROFITABILITY;

GHANA;

EID: 84886482235     PISSN: 03043878     EISSN: None     Source Type: Journal    
DOI: 10.1016/j.jdeveco.2013.09.010     Document Type: Article

References (45)

1. Anderson Siwan, Baland Jean-Marie The economics of ROSCAs and intrahousehold resource allocation. Q. J. Econ. 2002, 117(3):963-995.
2. Ashraf Nava, Karlan Dean, Yin Wesley Tying Odysseus to the mast: evidence from a commitment savings product in the philippines. Q. J. Econ. 2006, 121(2):635-672.
3. Baird Sarah, Ferreira Francisco, Özler Berk, Woolcock Michael Relative effectiveness of conditional and unconditional cash transfers for schooling outcomes in developing countries: a systematic review. Campbell Collab. Libr. Syst. Rev. 2013, 9(8).
4. Baland Jean-Marie, Guirkinger Catherine, Mali Charlotte Pretending to be poor: borrowing to escape forced solidarity in Cameroon. Econ. Dev. Cult. Chang. 2011, 60(1):1-16.
5. Banerjee Abhijit, Mullainathan Sendhil The shape of temptation: implications for the economic lives of the poor. MIT Working Paper No. 10-9 2010.
6. Bauer Michal, Chytilová Julie, Morduch Jonathan Behavioral foundations of microcredit: experimental and survey evidence from rural India. Am. Econ. Rev. 2012, 102(2):1118-1139.
7. Berge Lars Ivar Oppedal, Bjorvatn Kjetil, Tungodden Bertil Human and financial capital for microenterprise development: evidence from a field and lab experiment. NHH Discussion Paper Sam 2011, 1.
8. Bigsten Arne, Collier Paul, Dercon Stefan, Fafchamps Marcel, Gauthier Bernard, Gunning Jan-Willem, Isaksson Anders, Oduro Abena, Oostendorp Remco, Patillo Cathy, Soderbom Mans, Teal Francis, Zeufack Albert, Appleton Simon Rates of return on physical and human capital in Africa's manufacturing sector. Econ. Dev. Cult. Chang. 2000, 48(4):801-827.
9. Bruhn Miriam, McKenzie David In pursuit of balance: randomization in practice in development field experiments. Am. Econ. J. Appl. Econ. 2009, 1(4):200-232.
10. Brune, Lasse, Gine, Xavier, Goldberg, Jessica, Yang, Dean, 2013. Commitments to Save: A Field Experiment in Rural Malawi, University of Michigan, May (mimeograph).
11. Charlier Florence Saving or Sharing: The African Households' Dilemma 1999, Stanford Department of Economics, (Ph. D Dissertation).
12. Choi James, Laibson David, Madrian Brigitte Mental accounting in portfolio choice: evidence from a flypaper effect. Am. Econ. Rev. 2009, 99(5):2085-2095.
13. De Mel Suresh, McKenzie David, Woodruff Christopher Returns to capital: results from a randomized experiment. Q. J. Econ. 2008, 123(4):1329-1372.
14. De Mel Suresh, McKenzie David, Woodruff Christopher Are women more credit constrained? Experimental evidence on gender and microenterprise returns. Am. Econ. J. Appl. Econ. 2009, 1(3):1-32.
15. De Mel Suresh, McKenzie David, Woodruff Christopher Measuring microenterprise profits: must we ask how the sausage is made?. J. Dev. Econ. 2009, 88(1):19-31.
16. De Mel Suresh, McKenzie David, Woodruff Christopher One-time transfers of cash or capital have long-lasting effects on microenterprises in Sri Lanka. Science 2012, 335:962-966.
17. Di Falco, Salvatore, Bulte, Erwin. 2009. The Dark Side of Social Capital: Kinship, Consumption, and Investment, mimeograph.
18. Duflo Esther, Udry Christopher Intrahousehold resource allocation in CÔte d'Ivoire: social norms, separate accounts, and consumption choices. NBER Working Paper no. 10498 2004.
19. Duflo Esther, Kremer Michael, Robinson Jonathan Nudging farmers to use fertilizer: theory and experimental evidence from Kenya. Am. Econ. Rev. 2010, 101(6):2350-2390.
20. Emran, M. Shahe, Mahbub Morshed, A.K.M., Stiglitz, Joseph. 2007. Microfinance and Missing Markets, Mimeo. George Washington University.
21. Fafchamps Marcel, McKenzie David, Quinn Simon, Woodruff Christopher Using PDA consistency checks to increase the precision of profits and sales measurement in panels. J. Dev. Econ. 2012, 98(1):51-57.
22. Goldstein, Jacob. 2013. Is it nuts to give money to the poor without strings attached?, New York Times (August 13, [accessed 12 September 2013]). http://www.nytimes.com/2013/08/18/magazine/is-it-nuts-to-give-to-the-poor-without-strings-attached.html?ref=magazine&_r=0.
23. Grimm, Michael, Gubert, Flore, Koriko, Ousman, Lay, Jann, Nordman, Christophe. 2010. Does Forced Solidarity Hamper Entrepreneurial Activity? Evidence from Seven West-African Countries, Mimeo. International Institute of Social Studies, Eramus University Rotterdam.
24. Hanna Rema, Mullainathan Sendhil, Schwartzstein Joshua Learning through noticing: theory and experimental evidence in farming. NBER Discussion Paper no. 18401 2012.
25. Hill Polly Indigenous Trade and Market Places in Ghana 1962-64 1984, Department of History, University of Jos, Jos, Nigeria.
26. Hines James, Thaler Richard Anomalies: the flypaper effect. J. Econ. Perspect. 1995, 9(4):217-226.
27. Jacoby Hanan Is there an intrahousehold "flypaper effect"? Evidence from a school feeding programme. Econ. J. 2002, 112(476):196-221.
28. Jakiela Pamela, Ozier Owen Does Africa need a rotten kin theorem? Experimental evidence from village economies. World Bank Policy Research Working Paper No. 6085 2012.
29. Karlan Dean, Zinman Jonathan List randomization for sensitive behavior: an application for measuring use of loan proceeds. J. Dev. Econ. 2012, 98(1):71-75.
30. Karlan Dean, Knight Ryan, Udry Christopher Hoping to win, expected to lose: theory and lessons on micro enterprise development. NBER Working Paper no. 18325 2012.
31. Khazan Olga The case for unconditional handouts to the poor. The Atlantic 2013, (August 16, http://www.theatlantic.com/international/archive/2013/08/the-case-for-giving-poor-people-handouts-with-no-strings-attached/278770/ [accessed 12 September, 2013]).
32. Kremer M., Lee J., Robinson J., Rostapshova O. Behavioral biases and firm behavior: evidence from Kenyan retail shops. Am. Econ. Rev. Pap. Proc. 2013, 103(3):1-9.
33. Laibson David Golden eggs and hyperbolic discounting. Q. J. Econ. 1997, 112(2):443-477.
34. McKenzie David Beyond baseline and follow-up: the case for more t in experiments. J. Dev. Econ. 2012, 99(2):210-221.
35. McKenzie David, Woodruff Christopher Experimental evidence on returns to capital and access to finance in Mexico. World Bank Econ. Rev. 2008, 22(3):457-482.
36. Nickerson D., Rogers T. Do you have a voting plan? Implementation intentions, voter turnout, and organic plan making. Psychol. Sci. 2010, 2(2):194-199.
37. Platteau Jean-Philippe Institutions, Social Norms and Economic Development 2000, Harwood Academic Publishers, Amsterdam.
38. Schaner, Simone. 2013a. Do Opposites Detract? Intrahousehold Preference Heterogeneity and Inefficient Strategic Savings, Department of Economics, Dartmouth University (mimeograph).
39. Schaner, Simone. 2013b. The Persistent Power of Behavioral Change: Long-Run Impacts of Temporary Savings Subsidies for the Poor, Mimeo. Department of Economics, Dartmouth University (mimeograph).
40. Schündeln, Mathias. 2006. Modeling Firm Dynamics to Identify the Cost of Financing Constraints in Ghanaian Manufacturing, Mimeo. Harvard University.
41. Somville, Vincent. 2011. Daily Collectors, Public Good Provision, and Private Consumption: Theory and Evidence from Urban Benin, Department of Economics, Namur University (mimeograph).
42. Stanovich Keith, West Richard On the relative independence of thinking biases and cognitive ability. J. Pers. Soc. Psychol. 2008, 94:672-695.
43. Szabo, Andrea, 2012. Family Financing and Productivity among Small Manufacturing Firms in Ghana, University of Houston, mimeo.
44. Thaler Richard H. Saving, fungibility and mental accounts. J. Econ. Perspect. 1990, 4(1):193-205.
45. Udry Christopher, Anagol Santosh The return to capital in Ghana. Am. Econ. Rev. Pap. Proc. 2006, 96(2):388-393.