Back to History Current Version

Microcredit Made to Measure. Experimental Evidence from Rural Morocco

Last registered on April 06, 2018
View Trial History

Pre-Trial

Trial Information

General Information

Title
Tailored Microcredit in Rural Morocco
RCT ID
AEARCTR-0002618
Initial registration date
April 05, 2018

Initial registration date is when the trial was registered.

It corresponds to when the registration was submitted to the Registry to be reviewed for publication.

First published
April 06, 2018, 5:27 PM EDT

First published corresponds to when the trial was first made public on the Registry after being reviewed.

Locations

Country
Morocco
Region

Primary Investigator

Name
William Pariente
Affiliation
Université Catholique de Louvain
Contact Primary Investigator

Other Primary Investigator(s)

PI Name
Bruno Crepon
PI Affiliation
CREST
Contact Investigator
PI Name
Ralph Haas
PI Affiliation
EBRD
Contact Investigator
PI Name
Florencia Devoto
PI Affiliation
J-PAL Europe
Contact Investigator

Additional Trial Information

Status
In development
Start date
2018-04-09
End date
2020-12-31
Keywords
Finance & Microfinance
Additional Keywords
JEL code(s)
Secondary IDs
Abstract
Recent evidence on the ability of microcredit to stimulate entrepreneurship and reduce poverty has been sobering. An important reason why overall impacts are small is that relatively few people take up microcredit when it is offered to them. But even for the few that take up small loans, the available empirical evidence suggests a lack of transformative impact.

There might be a number of factors that affect both the demand for microcredit and its impact. For example, typical microcredit contracts (with regular repayments) may not be fully adapted to the needs of the population, especially in rural areas.

We propose to test a couple of changes in the design of microcredit loans (making their repayment more flexible) in rural areas of Morocco, where microcredit take-up is relatively low (Crépon et al., 2015) and entrepreneurial and employment activities are limited. Evaluating the effects of tailored microcredit loans designed to more closely match the financial needs of rural populations will allow us to learn more about how microcredit can be adjusted to make it a more attractive and hence a potentially more effective development tool.
External Link(s)

Registration Citation

Citation
Crepon, Bruno et al. 2018. "Tailored Microcredit in Rural Morocco." AEA RCT Registry. April 06. https://doi.org/10.1257/rct.2618-1.0
Former Citation
Crepon, Bruno et al. 2018. "Tailored Microcredit in Rural Morocco." AEA RCT Registry. April 06. https://www.socialscienceregistry.org/trials/2618/history/27734
Sponsors & Partners
Experimental Details

Interventions

Intervention(s)
Intervention Start Date
2018-04-09
Intervention End Date
2019-12-31

Primary Outcomes

Primary Outcomes (end points)
In the first part of the study, we will collect detailed data on production, income, time allocation, consumption and use of financial services.

In the second part of the study, we will rely on administrative data to measure loan take-up, amounts borrowed, reimbursement length and frequency, client retention, and portfolio at risk.
Primary Outcomes (explanation)

Secondary Outcomes

Secondary Outcomes (end points)
Secondary Outcomes (explanation)

Experimental Design

Experimental Design
In the first part of the study, potential borrowers will visit one of the participating microcredit branches to ask for a loan during the trial period. If they consent to participate in the study, they will be randomly assigned to one of two treatment groups or to a control group. Those in the treatment groups will have access to one of two tailored microcredit loans while those in the control group will have access to a standard microcredit loan. This part of the study will allow us to estimate the impact of the tailored loans on borrower welfare.

In the second part of the study, villages in the catchment area of the participating microcredit branches will be randomly assigned to one of the two treatment groups or to the control group. Loan officers will then visit the villages to promote one of the two tailored microcredit loans in each of the treatment villages and the standard microcredit loan in the control villages. This part of the study will allow us to estimate the impact of the tailored loans on the demand for credit.
Experimental Design Details
Randomization Method
Part I of the study: randomization done at the branch by a computer

Part II of the study: randomization done in office by a computer
Randomization Unit
We will randomize at the individual level for the first part of the study and at the village level for the second part of the study
Was the treatment clustered?
Yes

Experiment Characteristics

Sample size: planned number of clusters
Part II of the study: 240 villages
Sample size: planned number of observations
Part I of the study: 3,600 individuals Part II of the study: 240 villages Part II of the study: 240 villages
Sample size (or number of clusters) by treatment arms
Part I of the study: 1,200 individuals control, 1,200 individuals tailored loans (type 1), 1,200 individuals tailored loans (type 2)

Part II of the study: 80 villages control, 80 villages tailored loans (type 1), 80 villages tailored loans (type 2)
Minimum detectable effect size for main outcomes (accounting for sample design and clustering)
Supporting Documents and Materials
IRB

Institutional Review Boards (IRBs)

IRB Name
Commission Nationale de contrôle de la protection des Données à Caractère Personnel (CNDP)
IRB Approval Date
2018-03-27
IRB Approval Number
A-RS-81/2018
IRB Name
Innovations for Poverty Action Institutional Review Board
IRB Approval Date
2017-07-28
IRB Approval Number
13891
Analysis Plan

Post-Trial

Post Trial Information

Study Withdrawal

There is information in this trial unavailable to the public. Use the button below to request access.

Request Information

Intervention

Is the intervention completed?
No
Data Collection Complete
Data Publication

Data Publication

Is public data available?
No

Program Files

Program Files
Reports, Papers & Other Materials

Relevant Paper(s)

Reports & Other Materials