In response to the widespread consensus on the importance of social capital, and to concerns about the scarcity of institutions giving voice to disadvantaged groups, some donors have begun programs designed to strengthen indigenous community organizations. We use a prospective, randomized...

This article examines one reason why individuals develop and maintain local-level financial savings organizations known as rotating savings and credit organizations, or Roscas. Economic theories suggest that individuals form Roscas to finance the purchase of a lumpy durable good, in response to...