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Life and Death of Roscas : If Power Corrupts, Does Powerlessness Make One Blameless ?

Author

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  • Olivier Dagnelie

    () (CRED - Centre de Recherche en Economie du Développement - Facultés Universitaires Notre Dame de la Paix (FUNDP) - Namur)

Abstract

We have very few ideas as to what factors can influence the duration of roscas and reduce their failure risk. In this research, we bring new light on these empirical questions using an original data set containing information on living and dead roscas from Cotonou, Benin. We notice that the groups run by a president alone are more likely to fall apart. We also present evidence that individuals attracted to this type of groups have a lower social capital and therefore might be more likely to default.

Suggested Citation

  • Olivier Dagnelie, 2007. "Life and Death of Roscas : If Power Corrupts, Does Powerlessness Make One Blameless ?," Working Papers halshs-00077968, HAL.
  • Handle: RePEc:hal:wpaper:halshs-00077968
    Note: View the original document on HAL open archive server: https://halshs.archives-ouvertes.fr/halshs-00077968v2
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    Cited by:

    1. Olivier Dagnelie & Philippe Lemay‐Boucher, 2012. "Rosca Participation in Benin: A Commitment Issue," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 74(2), pages 235-252, April.
    2. Olivier Dagnelie & Philippe LeMay-Boucher, 2007. "ROSCA Participation in Benin: A Commitment Issue," CERT Discussion Papers 0708, Centre for Economic Reform and Transformation, Heriot Watt University.

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