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Please use this identifier to cite or link to this item: http://hdl.handle.net/2344/128

タイトル: Is Group Lending A Good Enforcement Scheme for Achieving High Repayment Rates?: Evidence from Field Experiments in Vietnam
著者: Kono, Hisaki
高野, 久紀
キーワード: Microfinance
Joint liability
Free-riding
Vietnam
マイクロファイナンス
ベトナム
Issue Date: May-2006
出版者: Institute of Developing Economies, JETRO
引用: IDE Discussion Paper. No. 61. 2006.5
抄録: Microfinance institutions employ various kinds of incentive schemes but estimating the effect of each scheme is not easy due to endogeneity bias. We conducted field experiments in Vietnam to capture the role of joint liability, monitoring, cross-reporting, social sanctions, communication and group formation in borrowers’ repayment behavior. We find that joint liability contracts cause serious free-riding problems, inducing strategic default and lowering repayment rates. When group members observe each others’ investment returns, participants are more likely to choose strategic default. Even after introducing a cross-reporting system and/or penalties among borrowers, the default rates and the ratios of participants who chose strategic default under joint liability are still higher than those under individual lending. We also find that joint liability lending often failed to induce mutual insurance among borrowers. Those who had been helped or who had repaid a little in the previous round were more likely to default strategically and repay a little again in the current round and those who paid large amounts were always the same individuals.
URI: http://hdl.handle.net/2344/128
Appears in Collections:04.IDE Discussion Paper
01.経済、産業(Economy and Industry)/東南アジア(Southeast Asian Studies)

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