Returns to Capital in Microenterprises: Evidence from a Field Experiment

We use randomized grants to generate shocks to capital stock for a set of Sri Lankan microenterprises. We find the average real return to capital in these enterprises is 4.6%-5.3% per year), substantially higher than market interest rates. We then examine the heterogeneity of treatment effects. Retu...

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Main Authors:	de Mel, Suresh, McKenzie, David, Woodruff, Christopher
Format:	Journal Article
Language:	EN
Published:	2012
Subjects:	Capital Budgeting Fixed Investment and Inventory Studies G310 Financing Policy Financial Risk and Risk Management Capital and Ownership Structure G320 Economics of Gender Non-labor Discrimination J160 Firm Performance: Size, Diversification, and Scope L250 Economic Development: Financial Markets Saving and Capital Investment Corporate Finance and Governance O160 Microdata Set
Online Access:	http://hdl.handle.net/10986/5590

id	okr-10986-5590
recordtype	oai_dc
spelling	okr-10986-55902021-04-23T14:02:23Z Returns to Capital in Microenterprises: Evidence from a Field Experiment de Mel, Suresh McKenzie, David Woodruff, Christopher Capital Budgeting Fixed Investment and Inventory Studies G310 Financing Policy Financial Risk and Risk Management Capital and Ownership Structure G320 Economics of Gender Non-labor Discrimination J160 Firm Performance: Size, Diversification, and Scope L250 Economic Development: Financial Markets Saving and Capital Investment Corporate Finance and Governance O160 Microdata Set We use randomized grants to generate shocks to capital stock for a set of Sri Lankan microenterprises. We find the average real return to capital in these enterprises is 4.6%-5.3% per year), substantially higher than market interest rates. We then examine the heterogeneity of treatment effects. Returns are found to vary with entrepreneurial ability and with household wealth, but not to vary with measures of risk aversion or uncertainty. Treatment impacts are also significantly larger for enterprises owned by males; indeed, we find no positive return in enterprises owned by females. 2012-03-30T07:33:34Z 2012-03-30T07:33:34Z 2008 Journal Article Quarterly Journal of Economics 00335533 http://hdl.handle.net/10986/5590 EN CC BY-NC-ND 3.0 IGO http://creativecommons.org/licenses/by-nc-nd/3.0/igo World Bank Journal Article
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	EN
topic	Capital Budgeting Fixed Investment and Inventory Studies G310 Financing Policy Financial Risk and Risk Management Capital and Ownership Structure G320 Economics of Gender Non-labor Discrimination J160 Firm Performance: Size, Diversification, and Scope L250 Economic Development: Financial Markets Saving and Capital Investment Corporate Finance and Governance O160 Microdata Set
spellingShingle	Capital Budgeting Fixed Investment and Inventory Studies G310 Financing Policy Financial Risk and Risk Management Capital and Ownership Structure G320 Economics of Gender Non-labor Discrimination J160 Firm Performance: Size, Diversification, and Scope L250 Economic Development: Financial Markets Saving and Capital Investment Corporate Finance and Governance O160 Microdata Set de Mel, Suresh McKenzie, David Woodruff, Christopher Returns to Capital in Microenterprises: Evidence from a Field Experiment
description	We use randomized grants to generate shocks to capital stock for a set of Sri Lankan microenterprises. We find the average real return to capital in these enterprises is 4.6%-5.3% per year), substantially higher than market interest rates. We then examine the heterogeneity of treatment effects. Returns are found to vary with entrepreneurial ability and with household wealth, but not to vary with measures of risk aversion or uncertainty. Treatment impacts are also significantly larger for enterprises owned by males; indeed, we find no positive return in enterprises owned by females.
format	Journal Article
author	de Mel, Suresh McKenzie, David Woodruff, Christopher
author_facet	de Mel, Suresh McKenzie, David Woodruff, Christopher
author_sort	de Mel, Suresh
title	Returns to Capital in Microenterprises: Evidence from a Field Experiment
title_short	Returns to Capital in Microenterprises: Evidence from a Field Experiment
title_full	Returns to Capital in Microenterprises: Evidence from a Field Experiment
title_fullStr	Returns to Capital in Microenterprises: Evidence from a Field Experiment
title_full_unstemmed	Returns to Capital in Microenterprises: Evidence from a Field Experiment
title_sort	returns to capital in microenterprises: evidence from a field experiment
publishDate	2012
url	http://hdl.handle.net/10986/5590
_version_	1764395596215484416

Returns to Capital in Microenterprises: Evidence from a Field Experiment

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