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Roscas without sanctions

Francesco Reito

Review of Social Economy, 2020, vol. 78, issue 4, 561-579

Abstract: This article shows that, under the assumption that members share the risk of negative income shocks, rotating savings and credit associations can be sustainable even with simple exponential discounting and without the presence of social norms and sanctioning systems.

Date: 2020
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DOI: 10.1080/00346764.2019.1693054

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