Together with Bruno Crépon, Florencia Devoto and William Parienté, I am working on a randomized controlled trial in rural Morocco to test whether matching loan repayments closely with expected entrepreneurial cash flows increases the take-up and poverty impact of microcredit. We introduce two new forms of individual-liability microcredit: a contract with a five-month grace period and, second, a ‘tailored’ contract where the repayment schedule is split into three equal periods (with varying installments). The pre-results review is available here and has recently been accepted by the Journal of Development Economics.
