Group lending with heterogeneous types:
AbstractGroup 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.
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Bibliographic InfoPaper provided by International Food Policy Research Institute (IFPRI) in its series IFPRI discussion papers with number 1268.
Date of creation: 2013
Date of revision:
group lending; heterogenous types; repayment; social behaviour; Credit; loan repayment; Modeling;
Other versions of this item:
- C35 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions
- O16 - Economic Development, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance
This paper has been announced in the following NEP Reports:
- NEP-ALL-2013-08-16 (All new papers)
- NEP-BAN-2013-08-16 (Banking)
- NEP-CTA-2013-08-16 (Contract Theory & Applications)
- NEP-MFD-2013-08-16 (Microfinance)
- NEP-SPO-2013-08-16 (Sports & Economics)
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