Behavioral foundations of microcredit: experimental and survey evidence from rural India

0377131 - NHÚ 2013 RIV US eng J - Journal Article
Bauer, Michal - Chytilová, J. - Morduch, J.
Behavioral foundations of microcredit: experimental and survey evidence from rural India.
American Economic Review. Roč. 102, č. 2 (2012), s. 1118-1139. ISSN 0002-8282. E-ISSN 1944-7981
R&D Projects: GA MŠMT LC542
Institutional research plan: CEZ:AV0Z70850503
Keywords : loan contracts * hyperbolic discounting * microfinance
Subject RIV: AH - Economics
Impact factor: 2.792, year: 2012

We use experimental measures of time discounting and risk aversion for villagers in south India to highlight behavioral features of microcredit, a financial tool designed to reduce poverty and fix credit market imperfections. The evidence suggests that microcredit contracts may do more than reduce moral hazard and adverse selection by imposing new forms of discipline on borrowers. We find that, conditional on borrowing from any source, women with present-biased preferences are more likely than others to borrow through microcredit institutions. Another particular contribution of microcredit may thus be to provide helpful structure for borrowers seeking self-discipline.
Permanent Link: http://hdl.handle.net/11104/0209375