An Impact Estimator Using Propensity Score Matching: People’s Business Credit Program to Micro Entrepreneurs in Indonesia

Authors

  • Eka Intan K.P Department of Resource and Enviromental Economics, Bogor Agricultural University, Bogor, Indonesia.
  • Farida Farida Faculty of Economics, Persada YAI University, Jakarta, Indonesia.
  • Hermanto Siregar Department of Economics, Bogor Agricultural University, Bogor, Indonesia.
Abstract:

P eople’s business credit program (KUR) has been launched to alleviate poverty through provision of micro financing to micro entrepreneurs in Indonesia This study aims to estimate the impact of KUR program using cross-sectional data and propensity score matching technique (PSM). The survey was conducted on 332 household entrepreneurs, consisting of 155 KUR receivers and 177 non-KUR receivers. Results show that KUR has impacts on increasing profits, total revenues, number of employees, and asset ownerships. KUR program also has impacted on reduction of food spending share. As such, KUR can play an important role to alleviate poverty and unemployment.  

Upgrade to premium to download articles

Sign up to access the full text

Already have an account?login

similar resources

an impact estimator using propensity score matching: people’s business credit program to micro entrepreneurs in indonesia

p eople’s business credit program (kur) has been launched to alleviate poverty through provision of micro financing to micro entrepreneurs in indonesia this study aims to estimate the impact of kur program using cross-sectional data and propensity score matching technique (psm). the survey was conducted on 332 household entrepreneurs, consisting of 155 kur receivers and 177 non-kur receivers. r...

full text

Evaluation of Credit Guarantee Policy using Propensity Score Matching

In the aftermath of the Asian financial crisis in Korea, the credit guarantee policy was used as an instrument by the government to support small and medium enterprises (SMEs). However, the effect of the credit guarantee has not been carefully studied and the policy has been criticized for impairing development of innovative private financial sector and for making SMEs highly dependent on gover...

full text

An Assessment of Propensity Score Matching as a Non Experimental Impact Estimator: Evidence from a Mexican Poverty Program

Social experiments have become the benchmark method for estimating the program impacts of policy interventions, but are not always available. Non experimental evaluation methods provide an alternative to the experimental design, but their results depend on stronger non-testable assumptions and therefore are less clear and more controversial. We present evidence on the reliability of a non exper...

full text

Program Heterogeneity and Propensity Score Matching: an Application to the Evaluation of Active Labor Market Policies

This paper addresses microeconometri c evaluation by matching methods when the programs under consideratio n are heterogeneous . Assuming that selection into the different subprograms and the potential outcomes are independent given observable characteristics , estimators based on different propensity scores are compared and applied to the analysis of active labor market policies in the Swiss r...

full text

The Effect of Inflation Targeting on Indirect Tax Performance in Selected Countries Using Propensity Score Matching Model

Inflation targeting framework has become a predominant monetary approach across the globe. Williams (2015) believes that in a very real sense, almost all economies are inflation targeters -either explicit or implicit- now.(1) Due to the increasing spread of this policy, it is necessary to consider the way it affects macroeconomic variables. using prevalent economic models for evaluating the eff...

full text

A Propensity Score Matching Analysis

The purpose of this paper is to determine how much is the “bonus” or “prize” to the sales per worker of Internet-using firms compared to not Internet-using firms. The author employs matching techniques based on an Argentinean database. The author first presents a binary logit model, in which the dependent variable is a dichotomous variable equal to 1 if the firm adopted Internet and 0 otherwise...

full text

My Resources

Save resource for easier access later

Save to my library Already added to my library

{@ msg_add @}


Journal title

volume 20  issue 4

pages  599- 615

publication date 2016-10-01

By following a journal you will be notified via email when a new issue of this journal is published.

Hosted on Doprax cloud platform doprax.com

copyright © 2015-2023