Marshall Burke, Lauren Falcao Bergquist, and Edward Miguel: Sell Low and Buy High: Arbitrage and Local Price Effects in Kenyan Markets: "Small-scale farmers are commonly observed to “sell low and buy high,” rather than the reverse. In a field experiment in Kenya... credit market imperfections.... Timely access to credit... increasing farm revenues and generating a return on investment of 29%.... In contrast to existing experimental work, the results indicate a setting in which microcredit can improve firm profitability, and suggest that GE effects can substantially shape microcredit’s effectiveness. In particular, failure to consider these GE effects could lead to underestimates of the social welfare benefits of microcredit interventions...
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