Numerous authors point to a decline in joint liability microcredit, and rise in individual liability lending. But … lenders to reduce their use of joint liability loan contracts. Third, we test the model's key predictions, and find support …

In recent years, microfinance institutions have expanded into group lending with individual liability, leaving out the … joint liability clause which was an important feature in earlier lending contracts. Recent experimental evidence indicates … that group lending may yield benefits, specifically lowering default rates, even in the absence of joint liability. In this …