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http://hdl.handle.net/11718/13513| Title: | Risk diversification through multiple group membership in microfinance |
| Authors: | Lahkar, Ratul Pingali, Viswanath |
| Keywords: | Diversification (Finance);Microfinance;Partnership (Business);Membership |
| Issue Date: | 2014 |
| Publisher: | Applied Economics Letters |
| Citation: | Lahkar, R., & Pingali, V. (2014). Risk diversification through multiple group membership in microfinance. Applied Economics Letters, 21(9), 622-625. |
| Abstract: | We consider group formation in the joint liability setting in microfinance. Joint liability imposes additional liability of having to repay for group partners should they fail to repay. Multiple group membership allows diversification of that risk, and therefore, is welfare enhancing for risk averse agents. Welfare enhancement occurs even when the total loan of an agent is unchanged. Therefore, multiple borrowing is not synonymous with over-borrowing. |
| URI: | http://hdl.handle.net/11718/13513 |
| ISSN: | 13504851 |
| Appears in Collections: | Journal Articles |
Files in This Item:
| File | Description | Size | Format | |
|---|---|---|---|---|
| Risk diversification through multiple group membership in microfinance.pdf Restricted Access | 318.62 kB | Adobe PDF | View/Open Request a copy |
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