Baland, Jean-Marie; Somanathan, Rohini; Wahhaj, Zaki - C.E.P.R. Discussion Papers - 2011
that in the absence of large social sanctions, the poorest borrowers are offered individual and not group contracts. When … compare the role of bank enforcement with social sanctions and find that bank enforcement is more effective in increasing … outreach while social sanctions raise the welfare of infra-marginal borrowers. Finally, we explore the welfare effects of group …