Microfoundations of Microfinance

21 November 2006 at 12:46 am Leave a comment

| Peter Klein |

As argued here in a series of posts, theoretical and empirical evidence on microfinance is rather scant. Here is a paper on group lending, providing experimental evidence on the effect of group size and social ties on repayment. Group lending performs well in a variety of (stylized) settings. The paper, by Klaus Abbink, Bernd Irlenbusch, and Elke Renner (Economic Inquiry, October 2006), is worth a read. (Working paper version here.)

Entry filed under: - Klein -, Institutions. Tags: .

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