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A Model of Microfinance with Adverse Selection, Loan Default, and Self-Financing

Batabyal, Amitrajeet A. - 2014

We analyze a market for microfinance in a region of a developing nation in which all projects are either of high or low quality. There is adverse selection because only borrowers know whether their project is of high or low quality but the microfinance institutions (MFIs) do not. The MFIs are...

Persistent link: https://www.econbiz.de/10013069676