Microfoundations of Microfinance
21 November 2006 at 12:46 am Peter G. Klein 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.
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