In this paper we empirically examine the impact of competition between Microfinance Institutions(MFIs) on the efficacy of loan contracts when the MFIs make use of joint liability loan contracts. Morespecifically, we aim to find out whether competition will reduce the power of the self-selection...

Since the 1950s our modern society has been in a stage of transformation. The grounds of economic action have been changed due to radical technological transformation in microelectronics, biotechnology, and the development of new manufacturing as well as socio-cultural changes. (...)