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In recent years, microfinance institutions have expanded into group lending with individual liability, leaving out the …
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Although microfinance institutions across the world are moving from group lending towards individual lending, this …
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We empirically examine the efficacy of various incentives of microlending contracts such as joint-liability or group access to future loans. We find that joint liability induces a group formation of low risk borrowers. Furthermore, the incentive system leads to peer measures between the...
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