Microfinance, which pledges to provide financial services to people without access to banking, is chiefly run by non-governmental organizations (NGOs). Little is known about the extent to which the transformation of these NGOs into shareholder-owned and, most often, regulated firms affects the way microfinance institutions (MFIs) conduct their business. By applying the event study methodology to 66 MFIs that have transformed, we quantify the effect that transformation has on the MFIs' business models. Our results suggest that portfolio yield is driven down by 3.9 percentage points due to transformation, indicating that clients get more favorable interest rates. At the same time, MFIs are able to significantly cut down their operational expenses, of which 1.1 percentage points can be attributed to transformation. Other findings include a steep increase in commercial debt leverage and deposits, a significant decrease in the fluctuation of funding costs and a sharp rise in average loan size. Profitability goes down in the short and medium term, while return on equity is driven up in the medium to long run. By exploiting within-MFI data, our approach goes beyond previous studies that mainly relied on between-MFI data. Overall, the results suggest that transformed MFIs become an attractive environment for investors, potentially encouraging a more profit-seeking behavior among transformed MFIs. Acknowledgements.We thank Victoria van Lennep and Li Yang for research assistance in data gathering data. We also AbstractMicrofinance, which pledges to provide financial services to people without access to banking, is chiefly run by non-governmental organizations (NGOs). Little is known about the extent to which the transformation of these NGOs into shareholder-owned and, most often, regulated firms affects the way microfinance institutions (MFIs) conduct their business. By applying the event study methodology to 66 MFIs that have transformed, we quantify the effect that transformation has on the MFIs' business models. Our results suggest that portfolio yield is driven down by 3.9 percentage points due to transformation, indicating that clients get more favorable interest rates. At the same time, MFIs are able to significantly cut down their operational expenses, of which 1.1 percentage points can be attributed to transformation. Other findings include a steep increase in commercial debt leverage and deposits, a significant decrease in the fluctuation of funding costs and a sharp rise in average loan size.Profitability goes down in the short and medium term, while return on equity is driven up in the medium to long run. By exploiting within-MFI data, our approach goes beyond previous studies that mainly relied on between-MFI data. Overall, the results suggest that transformed MFIs become an attractive environment for investors, potentially encouraging a more profit-seeking behavior among transformed MFIs.Word count: 210

ObjectivesBetter insights into health care utilization and out-of-pocket expenditures for non-communicable chronic diseases (NCCD) are needed to develop accessible health care and limit the increasing financial burden of NCCDs in Sub-Saharan Africa.MethodsA household survey was conducted in rural Kwara State, Nigeria, among 5,761 individuals. Data were obtained using biomedical and socio-economic questionnaires. Health care utilization, NCCD-related health expenditures and distances to health care providers were compared by sex and by wealth quintile, and a Heckman regression model was used to estimate health expenditures taking selection bias in health care utilization into account.ResultsThe prevalence of NCCDs in our sample was 6.2%. NCCD-affected individuals from the wealthiest quintile utilized formal health care nearly twice as often as those from the lowest quintile (87.8% vs 46.2%, p = 0.002). Women reported foregone formal care more often than men (43.5% vs. 27.0%, p = 0.058). Health expenditures relative to annual consumption of the poorest quintile exceeded those of the highest quintile 2.2-fold, and the poorest quintile exhibited a higher rate of catastrophic health spending (10.8% among NCCD-affected households) than the three upper quintiles (4.2% to 6.7%). Long travel distances to the nearest provider, highest for the poorest quintile, were a significant deterrent to seeking care. Using distance to the nearest facility as instrument to account for selection into health care utilization, we estimated out-of-pocket health care expenditures for NCCDs to be significantly higher in the lowest wealth quintile compared to the three upper quintiles.ConclusionsFacing potentially high health care costs and poor accessibility of health care facilities, many individuals suffering from NCCDs—particularly women and the poor—forego formal care, thereby increasing the risk of more severe illness in the future. When seeking care, the poor spend less on treatment than the rich, suggestive of lower quality care, while their expenditures represent a higher share of their annual household consumption. This calls for targeted interventions that enhance health care accessibility and provide financial protection from the consequences of NCCDs, especially for vulnerable populations.

Land degradation is increasingly becoming a major concern for Indian agriculture on which two-third of the population depend for their livelihood. Many policies and programs have been initiated in the last two decades to address this problem but the results are meager. Analysis of causes of land degradation and their extents is very important to design suitable policies to overcome the degradation problem. It is in this context, this paper identifies the major socio-economic variables that explain land degradation. It also finds economic and social costs of land degradation and the net benefits from taking up conservation activities and finally draws some lessons on what are the right policy instruments to promote sustainable land management practices. The Total Economic Value (TEV) concept has been used in deriving the costs and benefits. Our findings from state level analysis suggest that 'input subsidies' and 'decreasing land-man ratio' are two major determining factors that increase land degradation. Rationalizing input subsidies will go a long way in improving the management of land resources. At the household level, the number of crops grown and the operating area are significantly influencing land degradation. The analysis of the costs of action versus inaction against land degradation shows that costs of inaction are higher than the costs of action, indicating the benefits that will accrue if sufficient conservation practices are undertaken. Institutions and incentive mechanisms play important roles in changing the behavior of farmers to act in a resource conservative way.

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Identification of factors catalyzing sustainable land management (SLM) could provide insights for national policies and international efforts to address land degradation. Building on previous studies, and using novel datasets, this chapter identifies major drivers of land degradation at global and regional levels. The findings of this study confirm the earlier insights in the literature on the context-specific nature of the drivers of land degradation. This context-dependence explains the previous contradictions in the literature on the effects of various socio-economic and institutional factors on land degradation. It also calls for the localized diagnostic of the drivers of land degradation. The drivers of land degradation are predominantly local, so actions to address them should be based on the understanding of the local interplay of various factors and how they affect land degradation.

Combining multivariate and qualitative analyses, this micro‐level study suggests an explanation for the persistence of informal savings in rural south India despite publicly run large‐scale programmes to promote bank savings. Gold, in particular, but also Rotating Saving and Credit Associations (ROSCAs) and private lending, remain the dominant forms of savings. We argue that cultural norms and social institutions, such as social class and caste, shape the nature of savings, and also the propensity and opportunities to save. Gold serves multiple purposes, financial, economic, socio‐cultural and political. Furthermore, we find that the preference of Dalits (the lowest caste) for gold illustrates a relative emancipation, which contrasts with the persistence of caste‐related prohibitions preventing them investing in other assets, such as land.

Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Terms of use: Documents in AbstractModern bioenergy is a core ingredient of sustainable economic development as it plays an important role in poverty reduction and green growth. This makes bioenergy innovations critical, especially in developing countries where many households and rural communities rely on traditional bioenergy. Managing the multiple tradeoffs among bioenergy use, agricultural productivity, and ecosystem functions is a major development challenge. Addressing this challenge requires the identification of the drivers, tradeoffs and impacts of bioenergy production, trade and use in the Water, Energy and Food Security Nexus. The key objective of this paper is to provide an analytical framework and assess the track record of policy actions to stimulate modern bioenergy innovation in order to achieve multiple-win outcomes in terms of poverty alleviation, improved health and gender empowerment and environmental sustainability. We begin by describing the global trends and drivers in bioenergy production, trade and use. Secondly, we review the state of the art on impacts and links of bioenergy with the other Nexus components. Thirdly, we suggest a conceptual framework for evaluating the synergies and tradeoffs of bioenergy with other bioeconomic and economic activities along the Nexus. Follow-up empirical research at household and community levels in several developing countries will be based on this framework. Finally, a discussion on the conceptual framework is enriched by insights on the relevant actors, the tools and mechanisms specific to these actors for catalyzing innovations in the bioenergy for development.