de Mel, SureshMcKenzie, DavidWoodruff, Christopher2012-03-302012-03-302008Quarterly Journal of Economics00335533https://hdl.handle.net/10986/5590We use randomized grants to generate shocks to capital stock for a set of Sri Lankan microenterprises. We find the average real return to capital in these enterprises is 4.6%-5.3% per year), substantially higher than market interest rates. We then examine the heterogeneity of treatment effects. Returns are found to vary with entrepreneurial ability and with household wealth, but not to vary with measures of risk aversion or uncertainty. Treatment impacts are also significantly larger for enterprises owned by males; indeed, we find no positive return in enterprises owned by females.ENCC BY-NC-ND 3.0 IGOCapital BudgetingFixed Investment and Inventory Studies G310Financing PolicyFinancial Risk and Risk ManagementCapital and Ownership Structure G320Economics of GenderNon-labor Discrimination J160Firm Performance: Size, Diversification, and Scope L250Economic Development: Financial MarketsSaving and Capital InvestmentCorporate Finance and Governance O160Microdata SetJournal ArticleWorld Bank