DMCA
Group-lending with sequential financing, contingent renewal and social capital
| Venue: | Journal of Development Economics |
| Citations: | 8 - 0 self |
BibTeX
@ARTICLE{Chowdhury_group-lendingwith,
author = {Prabal Roy Chowdhury and Prabal Roy Chowdhury},
title = {Group-lending with sequential financing, contingent renewal and social capital},
journal = {Journal of Development Economics},
year = {},
pages = {487--506}
}
Share
 |
 |
 |
 |
||
OpenURL
Abstract
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 homoge-nous group-formation so that the lender can ascertain the identity of a group without lending to all its members, thus screening out bad bor-rowers partially. Moreover, under certain parameter configurations, negative assortative matching occurs as a robust phenomenon. Key words: Group-lending; sequential financing; contingent renewal; social capital; assortative matching.
Keyphrases
social capital contingent renewal sequential financing homoge-nous group-formation particular sequential financing negative assortative matching dynamic aspect bad bor-rowers key word appropriate parameter configuration robust phenomenon assortative matching certain parameter configuration
