Record Details

Group versus individual liability: Short and long term evidence from Philippine microcredit lending groups

Harvard Dataverse (Africa Rice Center, Bioversity International, CCAFS, CIAT, IFPRI, IRRI and WorldFish)

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Title Group versus individual liability: Short and long term evidence from Philippine microcredit lending groups
 
Identifier https://doi.org/10.7910/DVN/OGQWWL
 
Creator Giné, Xavier
Karlan, Dean
 
Publisher Harvard Dataverse
 
Description Group liability in microcredit purports to improve repayment rates through peer screening, monitoring, and enforcement. However, it may create excessive pressure, and discourage reliable clients from borrowing. Two randomized trials tested the overall effect, as well as specific mechanisms. The first removed group liability from pre-existing groups and the second randomly assigned villages to either group or individual liability loans. In both, groups still held weekly meetings. We find no increase in short-run or long-run default and larger groups after three years in pre-existing areas, and no change in default but fewer groups created after two years in the expansion areas.
 
Subject Social Sciences
Microfinance
Access to finance
Informal economies
Micro-enterprises
Social capital
Group liability
Group lending
 
Language English
Tagalog
 
Contributor Research Support, Innovations for Poverty Action
 
Type Survey data
Administrative data