Tag
capital_accumulation
2 findings
DevelopmentHigh Marginal Return to Microenterprise CapitalEstimated monthly return on business capital was 11.0% in the top-coded sample (95% CI: 2.4%–19.7%) and 13.0% in the full sample (95% CI: 1.0%–26.0%), generating an Rs 23,594 to Rs 28,770 increase in long-run business capital stock (an 81.0% increase over control).RCTFinance & microfinanceDebt Maturity Portfolio Effect vs Income EffectThe net present value income effect accounts for only Rs 10,000 (roughly 42%) of the observed Rs 23,600 long-run capital stock differential between grace period and regular clients, proving that enabling illiquid investment choice (the portfolio effect) drives the majority of economic gains.RCT