This paper looks at ‘the other side’ of the much-celebrated microfinance revolution, namely its potential impact on the conditions of access to credit for nonmembers (the residual market). It uses a standard adverse selection framework to show the advantage of group lending as a single...

This paper discusses possible ways to overcome the situation of physical isolation and the multiple failures that pervade Andean villages. Specifically, it studies a training program developed by a Peruvian NGO, which aims at triggering the development of a market for agricultural services that...