Publication

In writing this paper, the authors worked with Compartamos Banco, the largest microlender in Mexico, to estimate long run price elasticities by randomizing the interest rate offered on its core group lending product, Credito Mujer. The study found that long-run demand is price elastic, with lower prices bringing in substantial numbers of new borrowers, and thus Compartamos has sustainably served more clients by cutting rates, at no cost to shareholders.