Finance

Financial Performance and Outreach: A Global Analysis of Leading Microbanks

Financial Performance and Outreach: A Global Analysis of Leading Microbanks
Economic Journal, February 2007, Vol. 117, Issue 517, pp. F107-F133

Morduch, J., Cull, R. & Demirguc-Kunt, A.
02/01/2007

Microfinance promises to reduce poverty by employing profit-making banking practices in low-income communities. Many microfinance institutions have secured high loan repayment rates but, so far, relatively few earn profits. We examine why this promise remains unmet. We explore patterns of profitability, loan repayment, and cost reduction with unusually high-quality data on 124 institutions in 49 countries. The evidence shows the possibility of earning profits while serving the poor, but a trade-off emerges between profitability and serving the poorest. Raising fees to very high levels does not ensure greater profitability and the benefits of cost-cutting diminish when serving better-off customers.

Financial development and pathways of growth: State branching and deposit insurance laws in the United States from 1900 to 1940

Financial development and pathways of growth: State branching and deposit insurance laws in the United States from 1900 to 1940
Journal of Law and Economics 50 (2007) 239-272.

Dehejia, R.H. & Lleras-Muney, A.
01/01/2007

This paper studies the effect of state-level banking regulation on financial development and on components of state-level growth in the United States from 1900 to 1940. We use these banking laws to assess the findings of a large recent literature that has argued that financial development contributes to economic growth. We contend that the institutional mechanism leading to financial development is important in determining its consequences and that some types of financial development can even retard economic growth.

For the United States from 1900 to 1940, we argue that the financial expansion induced by expanded bank branching accelerated the mechanization of agriculture and spurred growth in manufacturing. In contrast, financial expansions induced by state deposit insurance had negative consequences for both the agricultural and manufacturing sectors.

Measuring Equity and Adequacy in School Finance

Measuring Equity and Adequacy in School Finance
Handbook of Research in Education Finance and Policy. Edited by Ladd, Helen F. and Ted Fiske. Laurence Erlbaum Associates, New York,

Downes, T. & Stiefel, L.
01/01/2007

The Handbook traces the evolution of the field from its initial focus on school inputs (per pupil expenditures) and the revenue sources (property taxes, state aid programs, etc) used to finance these inputs to a focus on educational outcomes (student achievement) and the larger policies used to achieve them. It shows how the current decision-making context in school finance inevitably interacts with those of governance, accountability, equity, privatization, and other areas of education policy. Because a full understanding of the important contemporary issues requires inputs from a variety of perspectives, the Handbook draws on contributors from a variety of disciplines.

Two Wrongs Do Not Make a Right

Two Wrongs Do Not Make a Right
National Tax Journal, Sep 2006, Vol. 59 Issue 3, p491-508, 18p.

Furman, J.
09/01/2006

This paper analyzes proposals to remedy tax-induced distortions in health care by using new tax incentives and retaining all of the existing distortionary tax incentives. In the process of remedying some distortions, this approach magnifies others--most notably increasing the total tax preference for health care. The paper considers two examples--the Bush administration's FY 2007 budget proposal and a plan by Cogan, Hubbard and Kessler (2005)--and shows that both could result in higher health spending and reduced welfare. Finally, the paper discusses the circumstances in which tax incentives could be warranted to remedy market failures in health insurance.

Financing Pro-poor Governance in Africa

Financing Pro-poor Governance in Africa
in Karen Millet, Dele Olowu and Robert Cameron (eds), Local Governance and Poverty Reduction in Africa (Tunis: Joint Africa Institute of the African Development Bank)

Smoke, P.
01/01/2006

Defines key lessons on financing pro-poor governance based on cases from Latin America, Asia and Africa (Colombia, Indonesia, Kenya and Uganda). The starting point for pro-poor fiscal decentralisation is that its major goals should be improved governance and performance, specifically, higher efficiency and equity in service delivery, economic development, and poverty alleviation. The enabling environment for fiscal decentralisation involves first the functions and the resources that might normally be allocated to local governments. Second, it can include alternative models and mechanisms to finance local governments, including intergovernmental transfers, markets, capital and donor financing.

Evidence Based Financial Management - What Are We Waiting For?

Evidence Based Financial Management - What Are We Waiting For?
Research in Healthcare Financial Management, Vol. 9, No. 1,

Finkler, S.A.
06/01/2005

Comments on the use of evidence-based approach in the area of health care financial management. Limitation of benchmarking; Barriers to the introduction of evidence-based financial management in health care; Responsibility of health care financial management educators.

The Economics of Microfinance

The Economics of Microfinance
Harvard University. MIT Press: Cambridge,

Morduch, J. & Armendariz de Aghion, B.
06/01/2005

The microfinance revolution, begun with independent initiatives in Latin America and South Asia starting in the 1970s, has so far allowed 65 million poor people around the world to receive small loans without collateral, build up assets, and buy insurance. This comprehensive survey of microfinance seeks to bridge the gap in the existing literature on microfinance between academic economists and practitioners. Both authors have pursued the subject not only in academia but in the field; Beatriz Armendáriz de Aghion founded a microfinance bank in Chiapas, Mexico, and Jonathan Morduch has done fieldwork in Bangladesh, China, and Indonesia. The authors move beyond the usual theoretical focus in the microfinance literature and draw on new developments in theories of contracts and incentives. They challenge conventional assumptions about how poor households save and build assets and how institutions can overcome market failures. The book provides an overview of microfinance by addressing a range of issues, including lessons from informal markets, savings and insurance, the role of women, the place of subsidies, impact measurement, and management incentives. It integrates theory with empirical data, citing studies from Asia, Africa, and Latin America and introducing ideas about asymmetric information, principal-agent theory, and household decision making in the context of microfinance. The Economics of Microfinance can be used by students in economics, public policy, and development studies. Mathematical notation is used to clarify some arguments, but the main points can be grasped without the math. Each chapter ends with analytically challenging exercises for advanced economics students.

The New York Transportation Journal

The New York Transportation Journal
Spring 2005, Vol. 8, No. 2.

Sander, E.G., Publisher & de Cerreño, A.L.C, Sterman, B.P., (eds).
04/01/2005

This issue includes testimony given by NYU Wagner Rudin Center Director, Elliot G. Sander at a joint hearing of the New York State Senate Finance and Assembly Ways and Means Committees. Also included is an interview with Congressman Earl Blumenauer (D-OR) on Federal funding, as well as an article focusing on Staten Island's unique transportation issues.

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