The Economics of Roscas and Intra-Household Resource Allocation

Siwan Anderson

No 1323, Econometric Society World Congress 2000 Contributed Papers from Econometric Society

Abstract: This paper investigates individual motives to participate in rotating savings and credit associations (roscas). Detailed evidence of roscas in a Kenyan slum (Nairobi) shows that most roscas are predominantly composed of women. To explain this phenomenon, we propose an argument based on conflictual interactions within the household, where husbands and wives have differential savings patterns due to different valuations of an indivisible good. We test the empirical implications of the model using data collected from the Kenyan slum.

Date: 2000-08-01
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Journal Article: The Economics of Roscas and Intrahousehold Resource Allocation (2002)
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