Outreach and Mission Drift in Microfinance: An Interpretation of the New Trend

Maurizio Caserta () and Francesco Reito ()
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Maurizio Caserta: University of Catania
Francesco Reito: University of Catania

Economics Bulletin, 2013, vol. 33, issue 1, 167-178

Abstract: This paper presents a theoretical description of some of the recent developments in the financial programs offered by microfinance institutions (MFIs). We show that even under for-profit MFIs, there is not necessarily a crowding out of the poorest microentrepreneurs, and that MFIs may optimally choose to offer both joint liability contracts (to poor borrowers) and individual liability contracts (to wealthier borrowers).

Keywords: Individual liability lending; joint liability lending; outreach; mission drift; for-profit microfinance institutions (search for similar items in EconPapers)
JEL-codes: D8 O1 (search for similar items in EconPapers)
Date: 2013-01-15
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Citations: View citations in EconPapers (1)

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