Does Microcredit Increase Household Welfare in the Absence of Microinsurance?

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• 作者：Joseph Oscar Akotey ; Charles K.D. Adjasi
• 关键词：microcredit ; microinsurance ; welfare ; households ; Ghana
• 刊名：World Development
• 出版年：2016
• 出版时间：January 2016
• 年：2016
• 卷：77
• 期：Complete
• 页码：380-394
• 全文大小：393 K

文摘

This study answers the question: Does a combination of microcredit and microinsurance improve the wellbeing of low-income households? We examine this challenge through Heckman sample selection, instrumental variable and treatment effect models. The findings indicate that households using microcredit in combination with microinsurance derive significant gains in terms of welfare improvement. Microcredit may be good but its benefit to the poor is enhanced and sustained if the poverty trapping risks are covered with microinsurance. To this extent, combining microcredit with microinsurance will empower the poor to make a sustainable exit from poverty.