Micro-Loans and Household Economies:Evidence in Indonesia

Suratini, Suratini (2018) Micro-Loans and Household Economies:Evidence in Indonesia. Micro-Loans and Household Economies: Evidence in Indonesia, 7 (1). pp. 91-102. ISSN 2476-9223

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Abstract

Micro-loans intended to improve household economies are a fascinating subject for research because a comparative analysis of before and after taking micro-loans would result in a bias selection. Households have different prior conditions from one another, so the difference found during the study is not entirely due to receiving micro-loans. There is a risk of moral hazard risk due to asymmetric information. This research adopts the double difference (DD) fixed effects method to estimate the extent of micro-loans’ impact. Results indicate that micro-loans are significantly influencing the household economies. The impact size was relatively small that it was not apparent during regression. As an implication, micro-loans intended for productive purposes can help improve household economic conditions. Effective and sustainable monitoring and counsel can minimize the risk of moral hazard.Keywords: micro-loans, household economies, asymmetric information Abstrak Pinjaman mikro untuk memperbaiki kondisi ekonomi rumah tangga menarik diteliti, karena analisis perbandingan sebelum dan setelah menerima pinjaman mikro memunculkan seleksi bias. Kondisi setiap rumah tangga tentunya tidak mungkin sama sebelumnya, sehingga perbedaan kondisi tersebut berarti tidak sepenuhnya akibat pinjaman mikro yang diterima rumah tangga. Terdapat risiko moral hazard karena adanya informasi tidak sempurna. Menggunakan metode double difference (DD) untuk mengestimasi besarnya dampak pinjaman mikro.Hasilnya menunjukkan pinjaman mikro secara nominal signifikan. Dampak yang ditimbulkan relatif kecil sehingga tidak tampak saat regresi. Implikasinya pinjaman mikro untuk tujuan produktif dapat membantu memperbaiki kondisi ekonomi rumah tangga. Pengawasan dan pendampingan secara efektif dan berkelanjutan dapat meminimalkan risiko adanya moral hazard. Kata Kunci: pinjaman mikro, ekonomi rumah tangga, informasi tidak simetris

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