Good Intentions Pave the Way to ... the Local Moneylender
Microborrowers may take usurious loans to repay a loan taken from a micro nance institution because of having neglected the time inconsistency of optimal plans or having discounted future payoffs too strongly from the ex-post perspective. Microfinance programs should strive at preventing such consequences of bounded rationality.
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| Length: | 9 pages |
| Date of creation: | Sep 2012 |
| Date of revision: | |
| Handle: | RePEc:bav:wpaper:126_arnoldbooker |
| Contact details of provider: | Web page: http://www.bgpe.de/ More information through EDIRC
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