More Than A Face

Undergraduate 2-

Market structure and borrower welfare in microfinance

Motivated by recent controversies surrounding the role of commercial lenders in microfinance, we analyze borrower welfare under different market structures, considering a benevolent non-profit lender, a for-profit monopolist, and a competitive credit market. To understand the magnitude of the effects analyzed, we simulate the model with parameters estimated from the MIX Market database. Our results suggest that market power can have severe implications for borrower welfare, while despite possible information frictions competition typically delivers similar borrower welfare to non-profit lending. In addition, for-profit lenders are less likely to use joint liability than non-profits

Unemployment, reliance on factory jobs and low income explain Brexit

The Brexit vote represented a key moment for European integration. Sascha O. Becker, Thiemo Fetzer, and Dennis Novy examine it in great detail, using statistical analysis as a way to highlight which factors proved to be the strongest predictors of the ‘Vote leave’ share. Though their findings establish correlations, not causation, they nonetheless underscore the many complex issues that surfaced in the ‘Vote Leave