Ahlin, Christian; Jiang, Neville - In: Journal of Development Economics 86 (2008) 1, pp. 1-21
We examine the long-run effects of micro-credit on development in an occupational choice model similar to Banerjee and Newman (JPE, 1993). Micro-credit is modeled as a pure improvement in the credit market that opens up self-employment options to some agents who otherwise could only work for...