Credit Access and Determinants of Entrepreneurial Success

Last registered on March 19, 2020
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Pre-Trial

Trial Information

General Information

Title
Credit Access and Determinants of Entrepreneurial Success
RCT ID
AEARCTR-0005567
Initial registration date
March 17, 2020

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
March 19, 2020, 12:05 PM EDT

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

Locations

Country
Bolivia (Plurinational State of)
Region

Primary Investigator

Name
Przemyslaw Jeziorski
Affiliation
UC Berkeley
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Other Primary Investigator(s)

PI Name
Jaime Millan
PI Affiliation
Universidad de Navarra
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PI Name
William Fuchs
PI Affiliation
UT Austin
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PI Name
Ganesh Iyer
PI Affiliation
UC Berkeley
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Additional Trial Information

Status
On going
Start date
2020-01-01
End date
2021-12-31
Keywords
Finance & Microfinance
Additional Keywords
JEL code(s)
Secondary IDs
Abstract
Low access to credit is one of the main concerns of public policy, especially in low and middle income countries. For that reason finding new ways to reduce the barriers of entry into credit markets without increasing the risk for lenders calls the attention of academics, policy makers and entrepreneurs.

This is also the case of Bolivia, a low income country in South America, where microcredit has been increased sharply in the last decades in order to reduce poverty and inequality . In that sense, our study aims to contribute to this analysis by measuring the relationship between financial and non-financial services in the case of a dynamic borrowing, working together with a financial institution in Bolivia, El Banco del Desarrollo Productivo (BDP).

The study’s main goals are:
To measure the impact of future incentives on repayment behavior.
To measure possible complementarities between access to credit and training.

Thus, we design an experimental study on a subset of BDP’s clients. In our study, actual clients we will randomly receive an offer of different opportunities to better credit conditional on good payment behavior. We will also have mixed access to better credit and training in order to measure the complementarities between both services, independently of the dynamic incentives.
External Link(s)

Registration Citation

Citation
Fuchs, William et al. 2020. "Credit Access and Determinants of Entrepreneurial Success." AEA RCT Registry. March 19. https://doi.org/10.1257/rct.5567-1.0
Sponsors & Partners
Experimental Details

Interventions

Intervention(s)
In our study, actual clients we will randomly receive an offer of different opportunities to better credit conditional on good payment behavior. We will also have mixed access to better credit and training in order to measure the complementarities between both services, independently of the dynamic incentives.
Intervention Start Date
2020-01-01
Intervention End Date
2021-12-31

Primary Outcomes

Primary Outcomes (end points)
Default rates, credit take up rates, delays in repayment, performance indications, social-economic indicators from the surveys.
Primary Outcomes (explanation)

Secondary Outcomes

Secondary Outcomes (end points)
Secondary Outcomes (explanation)

Experimental Design

Experimental Design
Initially, individuals will be randomly assigned to one of five groups (branches), 1 control and 4 treatments. The branches will be:
Control: Clients without any promise for the future (business as usual).
T1: Clients with a promise of being assessed to get better credit conditional on good payment behavior.
T2: Clients with a promise of being assessed to get better credit conditional on good payment behavior. Additionally, they will receive training.
T3: Clients with training but without any promise of better credit.
T4: Clients with training but without any promise of better credit. However, conditional on good behavior they will be assessed to get better credit.
Experimental Design Details
Randomization Method
Done in office by a computer,
Randomization Unit
Credit officer
Was the treatment clustered?
Yes

Experiment Characteristics

Sample size: planned number of clusters
212 credit officers
Sample size: planned number of observations
1754 individuals
Sample size (or number of clusters) by treatment arms
42 clusters per arm
Minimum detectable effect size for main outcomes (accounting for sample design and clustering)
Supporting Documents and Materials
IRB

Institutional Review Boards (IRBs)

IRB Name
Office for Protection of Human Subjects, UC Berkeley
IRB Approval Date
2017-05-11
IRB Approval Number
2017-03-9696
Analysis Plan

Post-Trial

Post Trial Information

Study Withdrawal

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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