Aubert, Cécile; de Janvry, Alain; Sadoulet, Elisabeth - In: Journal of Development Economics 90 (2009) 1, pp. 153-162
Credit agents in microfinance institutions (MFIs) must be given incentives to acquire information on potential borrowers and select them in accordance with the MFI's objectives. We show that while giving incentives has no cost in for-profit MFIs, it is costly in pro-poor MFIs: When repayment and...