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Microborrowers may take usurious loans to repay a loan taken from a microfinance institution because of having …. Microfinance programs should strive at preventing such consequences of bounded rationality. -- microfinance ; hyperbolic …
Persistent link: https://www.econbiz.de/10009620576
This paper develops a theory of optimal provision of commitment devices to people who value both commitment and flexibility, and whose preferences differ in the degree of time inconsistency. If time inconsistency is observable, both a planner and a monopolist provide devices that help each...
Persistent link: https://www.econbiz.de/10013028125
Few microfinance-funded businesses grow beyond subsistence entrepreneurship. This paper considers one possible … explanation: that the structure of existing microfinance contracts may discourage risky but high-expected return investments. To … microfinance institution in India. The experiments confirm the theoretical predictions that joint liability creates two …
Persistent link: https://www.econbiz.de/10013119958
In this paper, we present two stylized models of the financial system. We make the case that in order to realize the potential of a well-functioning complete financial market, financial system designers and financial service providers will need to think about ways to deliver financial...
Persistent link: https://www.econbiz.de/10010286094
About 20% of U.S. households are credit constrained. This research analyzes credit constraints among those who have applied for credit and controls for the effects of past credit behavior on being credit constrained. It is the first to identify the impact on being credit constrained of being...
Persistent link: https://www.econbiz.de/10012946701
We characterize Contractual Saving for Housing (CSH), a widespread and important product of household housing finance in Continental Europe, as relationship lending that is based on information production about borrowers in preceding saving relationships. In a multi-period partial equilibrium...
Persistent link: https://www.econbiz.de/10012903158
In this paper, we present two stylized models of the financial system. We make the case that in order to realize the potential of a well-functioning complete financial market, financial system designers and financial service providers will need to think about ways to deliver financial...
Persistent link: https://www.econbiz.de/10013134934
In this paper we study the impact of the degree of concentration of a financial system on the aggregate demand for housing as well as the feedback effect of the size of the mortgage loan market on lenders' profits, internal capital accumulation, loan losses and potential bailouts. In a general...
Persistent link: https://www.econbiz.de/10013136441
Borrowing decisions affect most households, with large stakes and implications for subfields as varied as macroeconomics and industrial organization. I review theoretical and empirical work on household debt: its prevalence, level, growth, and composition, as well as various measures of consumer...
Persistent link: https://www.econbiz.de/10013047673
Persistent link: https://www.econbiz.de/10012893892