Group lending with correlated project outcomes

This paper shows that positive correlation between project outcomes may improve the efficiency of microfinance group lending contracts. ► Microfinance borrowers’ projects are often correlated. ► This is considered to be a problem for group lending. ► We show that this is not necessarily the case. ►...

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Veröffentlicht in:	Economics letters 2012-11, Vol.117 (2), p.445-447
Hauptverfasser:	Katzur, Tomek, Lensink, Robert
Format:	Artikel
Sprache:	eng
Schlagworte:	Adverse selection Contracts Correlated project outcomes Correlation analysis Economic efficiency Group lending Microfinance Projects Studies
Online-Zugang:	Volltext
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