This paper examines the allocative performance of rotating savings and credit associations (ROSCAS), a financial institution that is observed worldwide. The authors develop a model in which individuals save for an indivisible good and study ROSCAS that distribute funds using random allocation...

Previous studies find that some social groups are stuck in poverty traps because of network effects. However, these studies do not carefully analyze how these groups overcome low human capital investment activities. Unlike previous studies, the model in this paper includes network externalities...

Economists have developed theoretical models identifying self-fulfilling expectations as an important source of statistical discrimination in labor markets (Arrow, 1973). The static models dominating the literature of statistical discrimination, however, may leave the false impression that a bad...

Previous studies find that some social groups are stuck in poverty traps because of network effects. However, these studies do not carefully analyze how these groups overcome low human capital investment activities. Unlike previous studies, the model in this paper includes network externalities...

As private education becomes widespread over the last decade in South Korea, the education gap among regions and social classes, noticeably widens. The recent global financial crisis exacerbates the problem as the rich continues to utilize more private education while the poor utilizes it less....

This paper examines the allocative performance of rotating savings and credit associations (roscas), a financial institution which is observed world-wide. We develop a model in which individuals save for an indivisible good and study roscas which distribute funds using random allocation and...

This paper analyzes the economic role and performance of a type of financial insti- tution which is observed world-wide - rotating savings and credit associations (Roscas). Using a model in which individuals save for an indivisible durable consumption good, we study Roscas which distribute funds...