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The Economics of Roscas and Intra-Household Resource Allocation

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Author Info
Siwan Anderson (Tilburg University)

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Abstract

This paper investigates individual motives to participate in rotating savings and credit associations (roscas). Detailed evidence of roscas in a Kenyan slum (Nairobi) shows that most roscas are predominantly composed of women. To explain this phenomenon, we propose an argument based on conflictual interactions within the household, where husbands and wives have differential savings patterns due to different valuations of an indivisible good. We test the empirical implications of the model using data collected from the Kenyan slum.

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File URL: http://fmwww.bc.edu/RePEc/es2000/1323.pdf
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Paper provided by Econometric Society in its series Econometric Society World Congress 2000 Contributed Papers with number 1323.

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Date of creation: 01 Aug 2000
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Handle: RePEc:ecm:wc2000:1323

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  1. Besley, Timothy & Coate, Stephen & Loury, Glenn, 1994. "Rotating Savings and Credit Associations, Credit Markets and Efficiency," Review of Economic Studies, Blackwell Publishing, vol. 61(4), pages 701-19, October. [Downloadable!] (restricted)
  2. Udry, Christopher, 1996. "Gender, Agricultural Production, and the Theory of the Household," Journal of Political Economy, University of Chicago Press, vol. 104(5), pages 1010-46, October. [Downloadable!] (restricted)
  3. Lundberg, Shelly & Pollak, Robert A, 1996. "Bargaining and Distribution in Marriage," Journal of Economic Perspectives, American Economic Association, vol. 10(4), pages 139-58, Fall. [Downloadable!] (restricted)
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This page was last updated on 2009-11-6.

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