Repayment and exclusion in a microfinance experiment
نویسندگان
چکیده
منابع مشابه
Repayment Frequency and Default in Microfinance: Evidence from India
In stark contrast to bank debt contracts, most micro-finance contracts require that repayments start nearly immediately after loan disbursement and occur weekly thereafter. Even though economic theory suggests that a more flexible repayment schedule would benefit clients and potentially improve their repayment capacity, micro-finance practitioners argue that he fiscal discipline imposed by freq...
متن کاملDoes Microfinance Repayment Flexibility Affect Entrepreneurial Behavior and Loan Default?
Recent evidence suggests heterogenous impacts of microfinance loans, with limited average effects on enterprise growth among the poor. One possibility is that the rigidity of the classic microcredit contract – widely held to be important for reducing default – inhibits investment in microenterprises. To explore these trade-offs, we provide experimental estimates of the consequences for client r...
متن کاملRepayment Frequency in Microfinance Contracts with Present-Biased Borrowers∗
This paper analyzes the theoretical underpinnings of high-frequency repayment, a feature in nearly all microfinance contracts that has been largely overlooked by theorists. The pervasive belief among practitioners that frequent repayment is critical in achieving high repayment rates is puzzling. Classically rational individuals should benefit from more flexible repayment schedules, and less fre...
متن کاملRepayment Flexibility Can Reduce Financial Stress: A Randomized Control Trial with Microfinance Clients in India
Financial stress is widely believed to cause health problems. However, policies seeking to relieve financial stress by limiting debt levels of poor households may directly worsen their economic well-being. We evaluate an alternative policy - increasing the repayment flexibility of debt contracts. A field experiment randomly assigned microfinance clients to a monthly or a traditional weekly inst...
متن کاملStudent Aid, Repayment Obligations and Enrolment into Higher Education in Germany – Evidence from a ‘Natural Experiment’
We evaluate the effect of the federal students’ financial assistance scheme (BAfoeG) on enrolment rates by exploiting exogenous variation introduced through a discrete shift in repayment regulations. Supported students had to repay the full loan after graduation from their future earnings until 1990. Thereafter, only 50 percent of the loan has become due, the other half of student aid has been ...
متن کاملذخیره در منابع من
با ذخیره ی این منبع در منابع من، دسترسی به آن را برای استفاده های بعدی آسان تر کنید
ژورنال
عنوان ژورنال: Journal of Economic Behavior & Organization
سال: 2017
ISSN: 0167-2681
DOI: 10.1016/j.jebo.2017.02.007