Duflo, Esther; Banerjee, Abhijit; Hornbeck, Richard - National Bureau of Economic Research (NBER) - 2014
We analyze a randomized trial in which microfinance loans were bundled with an unpopular (but cheap) health insurance policy. In randomly assigned treatment villages, purchase of the insurance policy was made mandatory at the time of loan renewal. This requirement led to a 22 percentage point...