You Can't Save Alone: Commitment in Rotating Savings and Credit Associations in Kenya
AbstractThis article examines one reason why individuals develop and maintain local-level financial savings organizations known as rotating savings and credit organizations, or Roscas. Economic theories suggest that individuals form Roscas to finance the purchase of a lumpy durable good, in response to intrahousehold conflict over savings, or to provide themselves with insurance. The article proposes an additional hypothesis for Rosca participation: saving requires discipline, and some Roscas may be formed to provide a collective mechanism for commitment in the presence of time-inconsistent preferences. Data from 70 Roscas located in western Kenya indicate that the commitment hypothesis is plausible and broadly consistent with the design and patterns of participation in these Roscas. As many Rosca participants put it, "You can't save alone."
Download InfoTo our knowledge, this item is not available for download. To find whether it is available, there are three options:
1. Check below under "Related research" whether another version of this item is available online.
2. Check on the provider's web page whether it is in fact available.
3. Perform a search for a similarly titled item that would be available.
Bibliographic InfoArticle provided by University of Chicago Press in its journal Economic Development and Cultural Change.
Volume (Year): 55 (2007)
Issue (Month): 2 (January)
Contact details of provider:
Web page: http://www.journals.uchicago.edu/EDCC/
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Pascaline Dupas & Jonathan Robinson, 2013.
"Savings Constraints and Microenterprise Development: Evidence from a Field Experiment in Kenya,"
American Economic Journal: Applied Economics,
American Economic Association, vol. 5(1), pages 163-92, January.
- Robinson, Jonathan & Dupas, Pascaline, 2009. "Savings Constraints and Microenterprise Development: Evidence from a Field Experiment in Kenya," Santa Cruz Department of Economics, Working Paper Series qt34w0w53t, Department of Economics, UC Santa Cruz.
- Pascaline Dupas & Jonathan Robinson, 2009. "Savings Constraints and Microenterprise Development: Evidence from a Field Experiment in Kenya," NBER Working Papers 14693, National Bureau of Economic Research, Inc.
- Nordén, Anna, 2014. "Payment Types and Participation in Payment for Ecosystem Services Programs: Stated Preferences of Landowners," Working Papers in Economics 591, University of Gothenburg, Department of Economics.
- Adelman, Sarah, 2013. "Keep your friends close: The effect of local social networks on child human capital outcomes," Journal of Development Economics, Elsevier, vol. 103(C), pages 284-298.
- Basu, Karna, 2014. "Commitment savings in informal banking markets," Journal of Development Economics, Elsevier, vol. 107(C), pages 97-111.
- Nordén, Anna, 2014. "Payment Types and Participation in Payment for Ecosystem Services Programs: Stated Preferences of Landowners," Discussion Papers dp-14-11-efd, Resources For the Future.
- Olivier Dagnelie & Philippe LeMay-Boucher, 2007. "ROSCA Participation in Benin: A Commitment Issue," CERT Discussion Papers 0708, Centre for Economic Reform and Transformation, Heriot Watt University.
- Deepa Narayan & Lant Pritchett & Soumya Kapoor, 2009. "Moving Out of Poverty : Volume 2. Success from the Bottom Up," World Bank Publications, The World Bank, number 11838, July.
- Karlan, Dean & Morduch, Jonathan, 2010. "Access to Finance," Handbook of Development Economics, Elsevier.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Journals Division).
If references are entirely missing, you can add them using this form.