Isabelle Agier

The Role of Credit Officers in the Performance of Micro Loans: Evidence from Brazil

This paper studies the role played by credit officers in loan performance. The structural model of credit provision explicitly considers the credit officers ability at the screening and audit stage. This model is estimated using rich data from VivaCred - a Brazilian NGO. Results suggest that (i) there is substantial heterogeneity among credit officers in the sample; (ii) their ability matters more at screening than at audit stage; and (iii) the estimated ability is correlated with their experience at VivaCred but not with their experience before joining the organization. Evidence suggests that a reduction in staff turnover would be beneficial to the institution.

The Cost of Empowerment: Multiple Sources of Women’s Debt in Rural India

Abstract Poor women borrow from multiple sources. This study examines whether the source of debt matters for women’s role in household financial decisions. Drawing on a household survey from rural Tamil Nadu, we categorise women’s loans along the lines of accessibility and formality into ‘planned loans’ and ‘instant loans’. We find that ‘instant loans’ support women’s bargaining power in various types of household financial decisions, whereas ‘planned loans’ have no impact. This surprising result is better understood when the nature of ‘instant loans’ is examined – these are frequently usurious, involve coercive enforcement methods and are considered socially debasing. Hence women who use them perform a convenient role for their households and in return gain some negotiating power.