A new study by the Consortium on Financial Systems & Poverty finds that Thailand's healthcare reform led to a significant reduction in infant mortality rates among the poor. The '30 Baht Program' increased hospital payments for indigent care, resulting in more poor people seeking medical treatment and improved health outcomes.
A 12-year analysis of Mexican banking data shows that cities and villages with higher credit-to-savings ratios have better quality of life and more educated citizens. The data also reveal that non-banking institutions play a crucial role in rural areas, offering financial services to populations with lower education levels.
A new study by MIT and Northwestern economists reveals that kinship networks are crucial for accessing credit, smoothing consumption, and financing large investments. The research suggests that indirect access to banks is as effective as a direct connection, highlighting the importance of social safety nets in reducing financial vulner...
A major study by economists Joseph P. Kaboski and Robert M. Townsend found that a large microfinance program in Thailand increased wages by approximately 7% in villages that received funding. The authors argue that the wage impacts may be due to more efficient distribution of capital, benefiting labor demand.
Kaboski and Townsend's paper, published in Econometrica, used data from the Townsend Thai Data project to evaluate the impact of a large-scale microfinance initiative. The authors' work provides important insights into development policy, highlighting the benefits and challenges of such programs.
A Brazilian law change enabled banks to sell repossessed cars quickly, encouraging them to offer better terms and increasing lending to riskier borrowers. The 'democratization of credit' resulted in more consumers buying newer, more expensive cars.
Robert M. Townsend, a prominent development economist at MIT, has been elected to the National Academy of Sciences. He is recognized for his outstanding contributions to understanding financial systems and their impact on developing economies.
Economists create new framework for examining developing economies by analyzing Thai villages. Preliminary findings show highly integrated capital markets across villages, with households relying on informal borrowing and gifts to finance opportunities.
A recent study reveals wide variance in results from the Thai Million Baht Village Fund, a large-scale microfinance program. Households' responses to increased credit vary greatly, with some reducing consumption and saving for larger investments.
Robert M. Townsend, a prominent development economist, has been awarded the 2011 Jean-Jacques Laffont Prize for his groundbreaking research on financial systems and their impact on developing economies. The prize recognizes his contributions to understanding the role of financial systems in driving economic growth and development.
A new study from the Consortium on Financial Systems and Poverty examines the role of spatial component in economic growth. The findings show that a high concentration of enterprise in an area predicts high subsequent growth, while entrepreneurial activity decreases with distance from centers of economic concentration.