We investigate the dynamics of borrower behavior in a microfinance experiment in which subjects are jointly responsible …

internal costs of group formation, and broadens the fractions of society into which microfinance institutions penetrate. We …

lending or similarly micro-finance are examples of such alternative lending contracts. In this paper, we investigate the … effect of mutual guarantee institutions (MGI) on loan interest rates. We argue that, similarly to group lending and micro-finance …

shed light on an apparent shift away from joint liability lending towards individual liability lending by some microfinance …

microfinance and inflation in developing countries. Therefore, we introduce a moral hazard problem into a monetary search model … to hold money balances. The group lending mechanism of the microfinance institution induces peer monitoring, which in … collapses. We show that inflation affects the impact of microfinance on social welfare in a nonlinear way. The positive effect …

This paper looks at ‘the other side’ of the much-celebrated microfinance revolution, namely its potential impact on the … residual market rate, the latter raises the cost of borrowing outside microfinance institutions (MFIs) due to a worsening of … profit). This arguably less intuitive impact of microfinance, which has been overlooked until now, is important given the …