Following recent literature, we hypothesise that saving and borrowing among microfinance clients are substitutes, satisfying the same underlying demand for a regular deposit schedule and a lumpsum withdrawal. We test this using a framed field experiment among women participating in group lending...

We conduct a field experiment to test the demand for flexibility and for soft and hard commitment among clients of a microfinance institution. We offer a commitment contract inspired by the rotating structure of a ROSCA. Additional treatments test ex ante demand for soft commitment (in the form...

Standard models often predict that people should either demand to save or demand to borrow, but not both. We hypothesise instead that saving and borrowing among microfinance clients are substitutes, satisfying the same underlying demand: for a regular schedule of deposits and a lump-sum...