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Ethnicity and Reciprocity: A model of Credit Transactions in Ghana Author info | Abstract | Publisher info | Download info | Related research | Statistics Eliana La Ferrara
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This paper studies kinship band networks as capital market institutions. It explores two of the channels through which membership in a community where individuals are genealogically linked, such as a kinship group, can affect their access to informal credit. The first is that incentives to default are lower for community members who can expect retaliation to fall on their offspring as well as on themselves (social enforcement). The second is that lenders prefer to lend to those members from whom they can expect reciprocation in the form of future loans for themselves or for their children (reciprocity). These two effects are incorporated in a theoretical framework with overlapping generations and tested using household-level data from Ghana.
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Paper provided by IGIER (Innocenzo Gasparini Institute for Economic Research), Bocconi University in its series Working Papers with number
193.
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Besley, Timothy, 1995.
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Fafchamps, Marcel, 1992.
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[Downloadable!] (restricted)
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De Paola, Maria & Scoppa, Vincenzo, 2005.
"The Role of Family Ties in the Labour Market. An Interpretation Based on Efficiency Wage Theory ,"
MPRA Paper
8956, University Library of Munich, Germany.
[Downloadable!]
Alesina, Alberto F & La Ferrara, Eliana, 2000.
"Who Trusts Others? ,"
CEPR Discussion Papers
2646, C.E.P.R. Discussion Papers.
[Downloadable!] (restricted)
Other versions: Eliana La Ferrara, .
"Inequality and Group Participation: Theory and Evidence from Rural Tanzania ,"
Working Papers
161, IGIER (Innocenzo Gasparini Institute for Economic Research), Bocconi University.
[Downloadable!]
Other versions:
La Ferrara, Eliana, 2000.
"Inequality And Group Participation: Theory And Evidence From Rural Tanzania ,"
CEPR Discussion Papers
2433, C.E.P.R. Discussion Papers.
[Downloadable!] (restricted) La Ferrara, Eliana, 2002.
"Inequality and group participation: theory and evidence from rural Tanzania ,"
Journal of Public Economics ,
Elsevier, vol. 85(2), pages 235-273, August.
[Downloadable!] (restricted) Christian Stoff, 2004.
"Establishing Cooperation between Groups: Ingroup versus Outgroup Punishment ,"
Working Papers
0416, University of Zurich, Socioeconomic Institute, revised Feb 2006.
[Downloadable!]
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