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a few comments

Posted: Fri Sep 06, 2019 10:40 am
by Luca Tiberti
Dear team,

Many thanks for your presentation. Here below a few comments which may help to further refine the study:
- I am not sure to see which would be the mechanism explaining the difference between own-financing and microcredit. In other terms, why should they differ (once selection issues are taken into account)?
- Does the microcredit come with some financial or entrepreneurial training (it seems the case, starting from 2018)? If so, this can confound the results, unless the various components can be clearly identified.
- Among the identified instruments, I believe that only the “interest rate on credit line …by department or in the communities” is a valid one. However, is this available from some primary data? Is this directly related to the rates adopted by the microcredit program?
- If my understanding is correct, being an entrepreneur is not random, so a problem of endogenous selection into entrepreneurship would exist
- Can the treated individuals also have other types of credit (in addition to the microcredit)?
- “Contrarily to previous studies that include formal credit from banks, informal credit and family credit, we exclusively focus on the sample of self-financing individuals (control group) and the sample of individuals that have used credit only from microfinance institutions (treatment group).” I do not see any motivation for this (strong) choice.