Abstract Standard economic theory suggests that one-time business grants can have at most temporary effects, and accordingly, policies to increase incomes of the self-employed in developing countries typically rely on sustained... more
Abstract Standard economic theory suggests that one-time business grants can have at most temporary effects, and accordingly, policies to increase incomes of the self-employed in developing countries typically rely on sustained engagement. In contrast, we found long-lasting impacts from one-time grants given in a randomized experiment to subsistence firms.
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 month (55%–63% per year), substantially higher than... more
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 month (55%–63% 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.
Abstract: The authors conduct a randomized experiment among women in urban Sri Lanka to measure the impact of the most commonly used business training course in developingcountries, the Start-and-Improve Your Business program. They work... more
Abstract: The authors conduct a randomized experiment among women in urban Sri Lanka to measure the impact of the most commonly used business training course in developingcountries, the Start-and-Improve Your Business program. They work with two representative groups of women: a random sample of women operating subsistence enterprises and a random sample of women who are out of the labor force but interested in starting a business.
A sample of 561 Sri Lanka microenterprise owners affected to various extents by the December 2004 Indian Ocean tsunami were surveyed five times at quarterly intervals between March 2005 and April 2006. Mental health recovery was measured... more
A sample of 561 Sri Lanka microenterprise owners affected to various extents by the December 2004 Indian Ocean tsunami were surveyed five times at quarterly intervals between March 2005 and April 2006. Mental health recovery was measured through questions on return to normalcy and change in life outlook. Business profits were used to measure livelihoods recovery.
