Ghosh, Suman; Tassel, Eric Van - Department of Economics, College of Business - 2007
moneylender and a subsidized microfinance institution. We assume that lenders face a moral hazard problem that is diminished as … subsidy levels for which the behavior of the moneylender complements the poverty reduction mission of the microfinance … the subsidy level available to the microfinance institution we discover that for small subsidies the moneylender may be …