Group lending with peer selection and moral hazard

The theory on group lending suggests that joint liability induces borrowers to form homogeneous groups based on their risk types, which alleviates adverse selection and contributes to the success of microcredit schemes. We extend this theory by allowing individuals to differ both in their exogenous...

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Bibliographic Details

Main Authors:	Hernandez, Manuel A., Liu, Yanyan, Gan, Li
Format:	Journal Article
Language:	Inglés
Published:	Scientific Research Publishing, Inc. 2022
Subjects:	lending joint liability liability microcredit group approaches moral hazard risk remuneration credit
Online Access:	https://hdl.handle.net/10568/141287