Group Lending With Heterogeneous Types PDF Download
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Author | : Li Gan |
Publisher | : Intl Food Policy Res Inst |
Total Pages | : 44 |
Release | : 2013-04-30 |
Genre | : Social Science |
ISBN | : |
Download Group Lending with Heterogeneous Types Book in PDF, ePub and Kindle
Group 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. We estimate the model using a rich dataset from a group-lending program in India. The estimation results support our model specification and show the advantages of relying on a type-varying method when analyzing the probability of default of group members. In particular, our model helps to better understand the factors driving repayment behavior, which may differ across group types, and shows a higher predictive power than standard single-agent choice models.
Author | : Li Gan |
Publisher | : |
Total Pages | : 50 |
Release | : 2017 |
Genre | : |
ISBN | : |
Download Group Lending with Heterogeneous Types Book in PDF, ePub and Kindle
This paper proposes and implements a mixture model to account for the unobserved group heterogeneity when modeling repayment behavior in group lending. We discuss the model properties and identification. We estimate the model using a rich dataset from a group lending program in India. The estimation results support the existence of two different group types: “responsible” and “irresponsible” groups. We find that the effects of the factors driving the repayment behavior differ across types. The model also shows a higher predictive performance than standard probabilistic models, particularly in identifying potential defaulters. We provide evidence supporting the robustness of the estimations.
Author | : Ahmet Altinok |
Publisher | : |
Total Pages | : 36 |
Release | : 2020 |
Genre | : |
ISBN | : |
Download Group Lending, Sorting, and Risk Sharing Book in PDF, ePub and Kindle
I study group lending with joint-liability contracts offered by Microfinance Institutions (MFIs). I develop a model of group lending where heterogeneous agents form groups, obtain capital from the MFI, and share risks among themselves. This paper shows that the composition of the groups is not always homogeneous once risk-sharing is introduced, rationalizing the empirical evidence of risk heterogeneity within groups. Moreover, I find that joint-liability introduces inefficiency for risk-averse borrowers, which explains why MFIs are moving away from joint-liability contracts. Surprisingly, the first best can sometimes be achieved even in the presence of information asymmetry.
Author | : Katrina Kosec |
Publisher | : Intl Food Policy Res Inst |
Total Pages | : 48 |
Release | : 2013-05-10 |
Genre | : Social Science |
ISBN | : |
Download The Child Health Implications of Privatizing Africas Urban Water Supply Book in PDF, ePub and Kindle
Identifying policies which can improve water sector management is critically important given the global burden of water-related disease. Each year, 1 in 10 child deathsroughly 800,000 in totalis the direct result of diarrhea. Can private-sector participation (PSP) in the urban piped water sector improve child health? The author uses child-level data from 39 African countries during 19862010 to show that introducing PSP decreases diarrhea among urban dwelling children under five years of age by 5.6 percentage points, or 35 percent of its mean prevalence. PSP also leads to greater reliance on piped water. To attribute causality, the author exploits time variation in the private water market share controlled by African countries former colonizers. A placebo analysis reveals that PSP does not affect symptoms of respiratory illness in the same children, nor does it affect a rural control group unaffected by PSP.
Author | : Mariam A. T. J. Mapila |
Publisher | : Intl Food Policy Res Inst |
Total Pages | : 32 |
Release | : 2013-07-16 |
Genre | : Social Science |
ISBN | : |
Download The Impact of Alternative Input Subsidy Exit Strategies on Malawis Maize Commodity Market Book in PDF, ePub and Kindle
This study has been conducted in order to generate evidence of the visibility of exit from farm input subsidies in an African context. The study simulates the impact of alternative exit strategies from Malawis farm input subsidy program on maize markets. The simulation is conducted using a multiequation partial equilibrium model of the national maize market, which is sequentially linked via a price-linkage equation to local rural maize markets. The model accounts for market imperfections prevailing in the country that arise from government price interventions. Findings show that some alternative exit strategies have negative and sustained impacts on maize yields, production, and acreage allocated to maize over the simulation period. Market prices rise steadily as a result of the implementation of different exit strategies. Despite higher maize prices, domestic maize consumption remains fairly stable, with a slow but increasing trend over the simulation period. Results further suggest that exit strategies that are coupled with improvements in agricultural extension services have the potential to offset the negative impacts of the removal or scaling down of agricultural input subsidies. The study findings demonstrate the difficulty of feasibly removing farm input subsidies. Study recommendations are therefore relevant for policymakers and development partners debating removal or implementation of farm input subsidies.
Author | : Christopher B. Barrett |
Publisher | : Routledge |
Total Pages | : 432 |
Release | : 2006-10-03 |
Genre | : Business & Economics |
ISBN | : 1135993734 |
Download The Social Economics of Poverty Book in PDF, ePub and Kindle
A unique analysis of the moral and social dimensions of microeconomic behaviour in developing countries, this book calls into question standard notions of rationality and many of the assumptions of neo-classical economics, and shows how these are inappropriate in communities with widespread disparity in incomes. This book will prove to be essential for students studying development economics.
Author | : Xavier Gine |
Publisher | : World Bank Publications |
Total Pages | : 38 |
Release | : 2006 |
Genre | : Bank Policy |
ISBN | : 0609181742 |
Download Group Versus Individual Liability Book in PDF, ePub and Kindle
Group liability is often portrayed as the key innovation that led to the explosion of the microcredit movement, which started with the Grameen Bank in the 1970s and continues on today with hundreds of institutions around the world. Group lending claims to improve repayment rates and lower transaction costs when lending to the poor by providing incentives for peers to screen, monitor, and enforce each other's loans. However, some argue that group liability creates excessive pressure and discourages good clients from borrowing, jeopardizing both growth and sustainability. Therefore, it remains unclear whether group liability improves the lender's overall profitability and the poor's access to financial markets. The authors worked with a bank in the Philippines to conduct a field experiment to examine these issues. They randomly assigned half of the 169 pre-existing group liability 'centers' of approximately twenty women to individual-liability centers (treatment) and kept the other half as-is with group liability (control). We find that the conversion to individual liability does not affect the repayment rate, and leads to higher growth in center size by attracting new clients.
Author | : |
Publisher | : |
Total Pages | : 502 |
Release | : 2007 |
Genre | : Africa |
ISBN | : |
Download Savings and Development Book in PDF, ePub and Kindle
Author | : |
Publisher | : Universal-Publishers |
Total Pages | : 119 |
Release | : 2011-09-28 |
Genre | : |
ISBN | : 1612335195 |
Download International Journal of Human Development and Sustainability Vol.4, No.1 Book in PDF, ePub and Kindle
Author | : Jan Pieter Krahnen |
Publisher | : Routledge |
Total Pages | : 129 |
Release | : 2022-07-06 |
Genre | : Business & Economics |
ISBN | : 042972070X |
Download Development Finance As Institution Building Book in PDF, ePub and Kindle
In this comparative study of programmes against poverty in developing countries, the authors argue that building sustainable, target group-oriented financial institutions is important and feasible, and that it is likely to have greater development impact than the channelling of external funds to poor target groups (small and micro-scale business, small farmers, and women). The analysis has far-reaching implications for development policy and will interest development specialists, policymakers, and scholars of development finance and international banking.