Group-lending with sequential financing, contingent renewal and social capital

• 成果类型: Article
• 署名作者: Chowdhury, Prabal Roy
• 署名单位: Indian Statistical Institute; Indian Statistical Institute Delhi
• 刊物名称: JOURNAL OF DEVELOPMENT ECONOMICS
• ISSN/ISSBN: 0304-3878
• DOI: 10.1016/j.jdeveco.2006.01.001
• 发表日期: 2007
• 页码: 487-506
• 关键词: group-lending; Sequential financing; contingent renewal; Social capital; assortative matching

摘要

This paper focuses on the dynamic aspects of group-lending, in particular sequential financing and contingent renewal. We examine the efficacy of these two schemes in harnessing social capital. We find that, for the appropriate parameter configurations, there is homogenous group-formation so that the lender can ascertain the identity of a group without lending to all its members, thus screening out bad borrowers partially. Moreover, under certain parameter configurations, negative assortative matching occurs as a robust phenomenon. (C) 2006 Elsevier B.V. All rights reserved.