This paper contrasts individual liability lending with and without groups to joint liability
lending. We are motivated by an apparent shift away from the use of joint liability by …

Numerous authors point to a decline in joint liability microcredit, and rise in individual liability
lending. But empirical evidence is lacking, and there have been no rigorous analyses of …

This paper explores group size in joint liability lending, primarily in the adverse selection
framework with local borrower information. A single, standardized contract that imposes full …

Health shocks are among the most important unprotected risks for microfinance clients, but
take-up of micro health insurance remains low. A framed field experiment with credit groups …

We derive an optimal lending contract in a two-period adverse selection model with limited
commitment on the borrower side. The contract involves “penalty” interest rates after default …

This paper develops a model of group borrowing that incorporates partial group liability,
where borrowers are penalized if their group members default but are not held responsible …

In many developing countries, gift expenses escalate with income growth and account for a
substantial share of household expenditure. We develop a theoretical model to demonstrate …

Group-based lending with joint liability has been a major tool microfinance institutions
(“MFIs”) have employed to improve lending feasibility. The related theoretical literature …

Purpose From an institutional theory perspective, the purpose of this paper is to investigate
the combined impact of financial capital (microcredit) and human capital development …

This paper studies the impact of Mobile Financial Systems' usage on microcredit
delinquency ratios in Tunisia by using either a two-part model or matching econometric …