ECON 508(S) Microfinance (Same as Economics 468) (D) (Q)

ECON 468(S) Microfinance (Same as Economics 508) (D) (Q)
Unequal access to finance (loans, savings, insurance) contributes to the persistence of poverty in developing countries. We review evidence that the entrepreneurial poor lack access to loans, and discuss how repayments can be enforced even when borrowers do not have collateral. We discuss how recent innovations in micro-insurance can reduce vulnerability. We will study the role of governments and donors in equalizing financial access through subsidies or targeting. Finally, we shall explore how microfinance can empower women within the household. Readings include current empirical and theoretical research in development economics. This course is an EDI course because it critically analyzes how microfinance interventions can reduce inequality both within and across households.
Format: seminar. Evaluation will be based on a midterm, a series of short papers and a longer final paper.
Prerequisites: Economics 251 and 255. Enrollment limit: 19 (expected 19). If overenrolled, preference will be given to senior majors and CDE fellows.
Hour: RAI