Group liability is often portrayed as the key innovation that led to the explosion of the microcredit movement, which …

Group liability in microcredit purports to improve repayment rates through peer screening, monitoring, and enforcement …

In recent years, microfinance institutions have expanded into group lending with individual liability, leaving out the … repay a group loan to safeguard their reputation. We show that the introduction of group loans with individual liability … importance to their reputation will select into individual liability loans, causing default rates and interest rates to rise for …

part due to the expansion of credit through microfinance institutions that are supported by governments, donor agencies …

. Using individual and county-level data, we document causal effects on trust and ethnic identity of an exogenous outburst of … intense fighting decreases generalized trust and increases ethnic identity. The effects are quantitatively large and robust to …

The donor community has enthusiastically embraced the concept of microfinance as a promising mechanism to attain the … support rendered by the donor community to microfinance programmes and the effectiveness of this particular outlet of official … microfinance as an instrument of microenterprise development and poverty reduction as well as its delivery mechanisms. The paper …

We study a unique microcredit model with zero interest rate and voluntary contributions, used by Akhuwat, a … microfinance organization operating in Pakistan since 2001. Borrowers are encouraged to give any amount they wish to the …