Microfinance – Once and Today

Microfinance and Dynamic Incentives

Dynamic incentives, where incentives to repay are generated by granting access to future loans, is one of the methodologies used by microfinance institutions (MFIs). In this paper, I present a model of dynamic incentives where lenders are uncertain over how much borrowers value future loans. Loan terms are determined endogenously, and loans become more favorable as the probability of default be...

Once and only once.

V enous thrombosis is a fairly common disorder that manifests mainly as deep vein thrombosis of the leg or pulmonary embolism. It affects 1 in 1000 individuals annually and has a substantial mortality rate. 1 Its causes are both genetic (prothrombotic abnormalities sometimes referred to as a group as thrombophilia) and acquired. 2 Among the latter are cancer, female hormone use, and all forms o...

Microfinance and Financial Development

‘Today I am so happy to see friends I once worked with many years ago’

I was approximately 16 years old when I first met Dr Carleton Gajdusek in Wanitabi village, situated south of Okapa in the Eastern Highlands Province. I worked with Shirley Lindenbaum when she came to live in our village, and I helped Michael Alpers with his research. I was asked to work as a translator, also to assist with the fieldwork and carry personal things like camera, books and film. Th...

Microfinance Games

Microfinance has been heralded as an effective way to address imperfections in credit markets. From a theoretical perspective, however, the success of microfinance contracts has puzzling elements. In particular, the group-based mechanisms often employed are vulnerable to free-riding and collusion, although they can also reduce moral hazard and improve selection. We created an experimental econo...