Grants vs Loans

Last registered on February 05, 2019

Pre-Trial

Trial Information

General Information

Title
Grants vs Loans
RCT ID
AEARCTR-0003851
Initial registration date
February 01, 2019
Last updated
February 05, 2019, 1:34 AM EST

Locations

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

Request Information

Primary Investigator

Affiliation
University of Illinois - Urbana Champaign

Other Primary Investigator(s)

PI Affiliation
AUC
PI Affiliation
CREST

Additional Trial Information

Status
On going
Start date
2016-10-01
End date
2021-12-31
Secondary IDs
Abstract
While the return to capital for microenterprises has been shown to be high, studies that aim to relieve capital constraints with microloans have found modest impacts. We explore potential explanations for this puzzle by implementing a large scale field experiment that randomizes the type of capital support provided to new businesses. Individuals who applied for a loan were randomized into four groups: microloans, cash grants, in-kind grants and a control group who received no support.
External Link(s)

Registration Citation

Citation
Crepon, Bruno, Mohamed Komi and Adam Osman. 2019. "Grants vs Loans." AEA RCT Registry. February 05. https://doi.org/10.1257/rct.3851-1.0
Former Citation
Crepon, Bruno et al. 2019. "Grants vs Loans." AEA RCT Registry. February 05. https://www.socialscienceregistry.org/trials/3851/history/41022
Experimental Details

Interventions

Intervention(s)
Intervention Start Date
2016-10-01
Intervention End Date
2019-10-01

Primary Outcomes

Primary Outcomes (end points)
Currently Open Business, Business Profits, Working Status, Total Income, Household Consumption, Assets
Primary Outcomes (explanation)

Secondary Outcomes

Secondary Outcomes (end points)
Subjective Wellbeing, Decision Making Power, Health
Secondary Outcomes (explanation)

Experimental Design

Experimental Design
Individuals who applied for a loan to open a new business or expand their current business were randomized into 1 of 4 groups: (1) Loan, (2) Cash Grant, (3) In-Kind Grant, (4) Control
Experimental Design Details
Not available
Randomization Method
Randomization done in office by computer
Randomization Unit
Randomized at the individual level, stratified by cohort and gender.
Was the treatment clustered?
No

Experiment Characteristics

Sample size: planned number of clusters
-
Sample size: planned number of observations
3200 individuals
Sample size (or number of clusters) by treatment arms
1000 loans, 600 cash grants, 600 in-kind grants, 1000 control.
Minimum detectable effect size for main outcomes (accounting for sample design and clustering)
IRB

Institutional Review Boards (IRBs)

IRB Name
University of Illinois
IRB Approval Date
2017-11-29
IRB Approval Number
17189