5) Suppose a microcredit loan program was randomly assigned among eligible poor households. Due to randomization, the treatment and control group are on average same in terms of both observable and unobservable characteristics before the loan was disbursed. We are interested in the impact of microcredit on earnings. After the program has run for 2 years, we collect information on earnings for both the treatment and comparison units. a) How can you measure the impact of the credit program?

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