ECON 313 Lecture Notes - Lecture 20: Marginal Utility, Marginal Cost, Treatment And Control Groups
15 Feb 2017
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If everyone in the group repays, they are eligible for a second loan of. At baseline, the average household was a family of 5 with monthly expenditure of 540$ Average consumption of goods did not increase. No effe(cid:272)ts o(cid:374) edu(cid:272)atio(cid:374), health, a(cid:374)d (cid:449)o(cid:373)e(cid:374)"s e(cid:373)po(cid:449)e(cid:396)(cid:373)e(cid:374)t. Only a comparison: slum with spandana to slum without spandana. Intention to treat effect may underestimate the treatment on the treated effect. It would be better to compare a borrower from spandana to a non-borrower spandana. Therefore we can conclude that microfinance is an innovative solution, but we need more evidence to prove it. Economic institutions at t-1 political power political institution economic institutions. If e =time, any minute spent working is a minute not spent on something else. If e=investment($), any e reduces surplus: surplus=benefit-cost= f(e)-e, maximization problem maxe f(e)-e. Marginal benefit: increase in output due to increase in effort.
