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Group lending with heterogeneous types:

Author

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  • Gan, Li
  • Hernandez, Manuel A.
  • Liu, Yanyan

Abstract

Group lending has been widely adopted in the past thirty years by many microfinance institutions as a means to mitigate information asymmetries when delivering credit to the poor. This paper proposes an empirical method to address the potential omitted-variable problem resulting from unobserved group types when modeling the repayment behavior of group members.

Suggested Citation

  • Gan, Li & Hernandez, Manuel A. & Liu, Yanyan, 2013. "Group lending with heterogeneous types:," IFPRI discussion papers 1268, International Food Policy Research Institute (IFPRI).
  • Handle: RePEc:fpr:ifprid:1268
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    File URL: http://www.ifpri.org/sites/default/files/publications/ifpridp01268.pdf
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    References listed on IDEAS

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    Cited by:

    1. Ismail, Abdul Ghafar & Yussof, Wan Nor AisyahWan, 2015. "Group Lending Policy and Repayment Rate in Islamic Microfinance Institutions," Policy Papers 1435-1, The Islamic Research and Teaching Institute (IRTI).
    2. Gan, Li & Hernandez, Manuel A. & Zhang, Shuoxun, 2021. "Insurance or deliberate use of the bankruptcy law for financial gain? Testing for heterogeneous filing behaviors in the United States," Economic Modelling, Elsevier, vol. 105(C).

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    More about this item

    Keywords

    group lending; heterogenous types; repayment; social behaviour; Credit; loan repayment; Modeling;
    All these keywords.

    JEL classification:

    • C35 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions
    • O16 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance

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