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El crédito solidario, el colateral social, y la colusión. Algunos apuntes
[Group Lending, Social Collateral and Collusion. Some Notes]

  • Galarza, Francisco

In recent years, the literature on group lending has increased considerably, inspired by the successful microfinance experiences in Bangladesh, Bolivia, and other developing countries. A great deal of this literature has emphasized the ability of group lending mechanisms to reduce borrower selection costs, and to increase peer monitoring and enforcement. In terms of enforcement, it is commonly assumed that peers will keep a vigilant eye on the other group members' economic activities. The existence of social ties is also expected to impose additional constraints (and penalties) to opportunistic behavior, thus reducing default rates. This review article takes a critical perspective on the group lending methodology and examines both sides of the story: its beneficial features and its potential limitations.

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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 30442.

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Date of creation: 2003
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Handle: RePEc:pra:mprapa:30442
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  1. Armendariz de Aghion, Beatriz, 1999. "On the design of a credit agreement with peer monitoring," Journal of Development Economics, Elsevier, vol. 60(1), pages 79-104, October.
  2. Ghatak, Maitreesh, 1999. "Group lending, local information and peer selection," Journal of Development Economics, Elsevier, vol. 60(1), pages 27-50, October.
  3. Laffont, Jean-Jacques, 2000. "Collusion and Group Lending with Adverse Selection," IDEI Working Papers 95, Institut d'Économie Industrielle (IDEI), Toulouse.
  4. Maitreesh Ghatak & Timothy W. Guinnane, 1998. "The Economics of Lending with Joint Liability: Theory and Practice," Discussion Papers 98-16, University of Copenhagen. Department of Economics.
  5. Andrew Powell & Marcela Cristini & Ramiro Moya, 2001. "The Importance of an Effective Legal System for Credit Markets: The Case of Argentina," Research Department Publications 3125, Inter-American Development Bank, Research Department.
  6. Zeller, Manfred, 1994. "Determinants of credit rationing," FCND discussion papers 2, International Food Policy Research Institute (IFPRI).
  7. Ashok S. Rai & Tomas Sjostrom, . "Is Grameen Lending Efficient?," CID Working Papers 40, Center for International Development at Harvard University.
  8. Timothy Besley, 1995. "Nonmarket Institutions for Credit and Risk Sharing in Low-Income Countries," Journal of Economic Perspectives, American Economic Association, vol. 9(3), pages 115-127, Summer.
  9. Sharma, Manohar & Zeller, Manfred, 1997. "Repayment performance in group-based credit programs in Bangladesh: An empirical analysis," World Development, Elsevier, vol. 25(10), pages 1731-1742, October.
  10. Pitt, M.M. & Khandker, S.R., 1996. "Household and Intrahousehold Impact of the Grameen Bank and Similar Targeted Credit Programs in Bangladesh," World Bank - Discussion Papers 320, World Bank.
  11. Laffont, Jean-Jacques & N'Guessan, Tchetche, 2000. "Group lending with adverse selection," European Economic Review, Elsevier, vol. 44(4-6), pages 773-784, May.
  12. Stiglitz, Joseph E, 1990. "Peer Monitoring and Credit Markets," World Bank Economic Review, World Bank Group, vol. 4(3), pages 351-66, September.
  13. Woerz, Julia, 1999. "Group Lending and Its Implications in Credit Markets for Poor People," Transition Economics Series 12, Institute for Advanced Studies.
  14. Jain, Pankaj S., 1996. "Managing credit for the rural poor: Lessons from the Grameen Bank," World Development, Elsevier, vol. 24(1), pages 79-89, January.
  15. J. Rodrigo Fuentes & Carlos Maqueira, 1999. "Institutional Arrangements to Determine Loan Repayment in Chile," Research Department Publications 3073, Inter-American Development Bank, Research Department.
  16. Morduch, Jonathan, 1999. "The role of subsidies in microfinance: evidence from the Grameen Bank," Journal of Development Economics, Elsevier, vol. 60(1), pages 229-248, October.
  17. Stéphane Straub & Horacio Sosa, 1999. "Institutional Arrangements to Ensure Willingness to Repay in Financial Markets: A Case Study of Paraguay," Research Department Publications 3062, Inter-American Development Bank, Research Department.
  18. Wydick, Bruce, 1999. "Can Social Cohesion Be Harnessed to Repair Market Failures? Evidence from Group Lending in Guatemala," Economic Journal, Royal Economic Society, vol. 109(457), pages 463-75, July.
  19. Sharma, Manohar & Zeller, Manfred, 1996. "Repayment performance in group-based credit programs in Bangladesh," FCND discussion papers 15, International Food Policy Research Institute (IFPRI).
  20. Alvarado, Javier & Portocarrero M., Felipe & Trivelli, Carolina & Gonzales de Olarte, Efraín & Galarza, Francisco & Venero, Hildegardi, 2001. "El financiamiento informal en el Perú: lecciones desde tres sectores
    [Informal Finance in Peru: Lessons from Three Sectors]
    ," MPRA Paper 47681, University Library of Munich, Germany.
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