Is the credit worth it? For-profit lenders in microfinance with rational and behavioral borrowers

Jonathan de Quidt and Maitreesh Ghatak

LSE Research Online Documents on Economics from London School of Economics and Political Science, LSE Library

Abstract: The bulk of the literature on microcredit has focused on either not‐for‐profit lenders or assumes a perfectly competitive, zero‐profit market equilibrium. Yet the market has experienced a significant shift toward for‐profit lending and the assumptions of perfect competition are likely to be too strong in many locations. We review the state of the literature on for‐profit lending in microcredit, consider its implications for both conventionally ‘rational’ borrowers and for borrowers with behavioral biases, and point out directions for future research.

JEL-codes: F3 G3 (search for similar items in EconPapers)
Date: 2018-01-25
New Economics Papers: this item is included in nep-ban and nep-mfd
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Published in Annals of Public and Cooperative Economics, 25, January, 2018, 89(1), pp. 175-199. ISSN: 1370-4788

Downloads: (external link)
http://eprints.lse.ac.uk/87515/ Open access version. (application/pdf)

Related works:
Journal Article: IS THE CREDIT WORTH IT? FOR-PROFIT LENDERS IN MICROFINANCE WITH RATIONAL AND BEHAVIORAL BORROWERS (2018)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ehl:lserod:87515

Access Statistics for this paper

More papers in LSE Research Online Documents on Economics from London School of Economics and Political Science, LSE Library LSE Library Portugal Street London, WC2A 2HD, U.K.. Contact information at EDIRC.
Bibliographic data for series maintained by LSERO Manager ().