Commercialization and the Decline of Joint Liability Microcredit

Jonathan de Quidty, Thiemo Fetzer and Maitreesh Ghatak

No 269575, Economic Research Papers from University of Warwick - Department of Economics

Abstract: Numerous authors point to a decline in joint liability microcredit, and rise in individual liability lending. But empirical evidence is lacking, and there have been no rigorous analyses of possible causes. We first show using the well-known MIX Market dataset that there is evidence for a decline. Second, we show theoretically that commercialization–an increase in competition and a shift from non-profit to for-profit lending (both of which are present in the data)–drives lenders to reduce their use of joint liability loan contracts. Third, we test the model’s key predictions, and find support for them in the data.

Keywords: Financial; Economics (search for similar items in EconPapers)
Pages: 55
Date: 2016-03-03
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
https://ageconsearch.umn.edu/record/269575/files/twerp_1119_fetzer.pdf (application/pdf)
https://ageconsearch.umn.edu/record/269575/files/t ... r.pdf?subformat=pdfa (application/pdf)

Related works:
Journal Article: Commercialization and the decline of joint liability microcredit (2018)
Working Paper: Commercialization and the Decline of Joint Liability Microcredit (2016)
Working Paper: Commercialization and the Decline of Joint Liability Microcredit (2016)
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:ags:uwarer:269575

DOI: 10.22004/ag.econ.269575

Access Statistics for this paper

More papers in Economic Research Papers from University of Warwick - Department of Economics
Bibliographic data for series maintained by AgEcon Search ().