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We develop a model to study the choice between formal and informal sources of credit in a setting with strategic default due to limited enforcement. Informal loans (e.g., from friends or relatives) are enforced by the threat of both parties losing the friendship relation. In contrast, formal...
Persistent link: https://www.econbiz.de/10010818169
Group liability is often portrayed as the key innovation that led to the explosion of the microcredit movement, which grew with the Grameen Bank in the 1970s and continues on today with hundreds of institutions around the world. Group liability claims to improve repayment rates and lower...
Persistent link: https://www.econbiz.de/10010264866
Group liability in microcredit purports to improve repayment rates through peer screening, monitoring, and enforcement. However, it may create excessive pressure, and discourage reliable clients from borrowing. Two randomized trials tested the overall effect, as well as specific mechanisms. The...
Persistent link: https://www.econbiz.de/10010282737
Group liability in microcredit purports to improve repayment rates through peer screening, monitoring, and enforcement. However, it may create excessive pressure, and discourage reliable clients from borrowing. Two randomized trials tested the overall effect, as well as specific mechanisms. The...
Persistent link: https://www.econbiz.de/10005018059
Lending to the poor is expensive due to high screening, monitoring, and enforcement costs. Group lending advocates believe lenders overcome this by harnessing social connections. Using data from FINCA-Peru, I exploit a quasi random group formation process to find evidence of peers successfully...
Persistent link: https://www.econbiz.de/10005791873
Lending to the poor is expensive due to high screening, monitoring, and enforcement costs. Group lending advocates believe lenders overcome this by harnessing social connections. Using data from FINCA-Peru, I exploit a quasirandom group formation process to find evidence of peers successfully...
Persistent link: https://www.econbiz.de/10005548085
Group liability is often portrayed as the key innovation that led to the explosion of the microcredit movement, which started with the Grameen Bank in the 1970s and continues on today with hundreds of institutions around the world. Group lending claims to improve repayment rates and lower...
Persistent link: https://www.econbiz.de/10005656151
Lending to the poor is expensive due to high screening, monitoring, and enforcement costs. Group lending advocates believe lenders overcome this by harnessing social connections. Using data from FINCA-Peru, I exploit a quasirandom group formation process to find evidence of peers successfully...
Persistent link: https://www.econbiz.de/10011150211
though they relax financing constraints. We relate this insight to the limited success of group-based microfinance in … loans ; social ties ; altruism ; peer-to-peer lending ; small business ; entrepreneurial finance ; microfinance ; missing …
Persistent link: https://www.econbiz.de/10009737925
We analyze the relationship between Microfinance Institutions (MFIs) and external donors, with the aim of contributing … to the debate on "mission drift" in microfinance. We assume that both the donor and the MFI are pro-poor, possibly at …
Persistent link: https://www.econbiz.de/10011602702