Group lending with heterogeneous types

This paper proposes and implements a mixture structure to model repayment behavior in group lending with unobserved group heterogeneity. We discuss the model properties and identification and estimate the model using a rich dataset from a group lending program in India. The estimation results suppor...

Descripción completa

Detalles Bibliográficos
Autores principales: Gan, Li, Hernandez, Manuel A., Liu, Yanyan
Formato: Journal Article
Lenguaje:Inglés
Publicado: Wiley 2018
Materias:
Acceso en línea:https://hdl.handle.net/10568/147105
_version_ 1855542520238309376
author Gan, Li
Hernandez, Manuel A.
Liu, Yanyan
author_browse Gan, Li
Hernandez, Manuel A.
Liu, Yanyan
author_facet Gan, Li
Hernandez, Manuel A.
Liu, Yanyan
author_sort Gan, Li
collection Repository of Agricultural Research Outputs (CGSpace)
description This paper proposes and implements a mixture structure to model repayment behavior in group lending with unobserved group heterogeneity. We discuss the model properties and identification and estimate the model using a rich dataset from a group lending program in India. The estimation results support the existence of two different group types: “responsible” and “irresponsible” groups. We find that the effects of the factors driving repayment behavior differ across types. The model also shows a higher predictive performance than standard probabilistic models, particularly in the identification of potential defaulters. We provide evidence supporting the robustness of our estimations.
format Journal Article
id CGSpace147105
institution CGIAR Consortium
language Inglés
publishDate 2018
publishDateRange 2018
publishDateSort 2018
publisher Wiley
publisherStr Wiley
record_format dspace
spelling CGSpace1471052025-02-24T06:49:20Z Group lending with heterogeneous types Gan, Li Hernandez, Manuel A. Liu, Yanyan models microfinance lending economic development economic behaviour economics econometric models repayment This paper proposes and implements a mixture structure to model repayment behavior in group lending with unobserved group heterogeneity. We discuss the model properties and identification and estimate the model using a rich dataset from a group lending program in India. The estimation results support the existence of two different group types: “responsible” and “irresponsible” groups. We find that the effects of the factors driving repayment behavior differ across types. The model also shows a higher predictive performance than standard probabilistic models, particularly in the identification of potential defaulters. We provide evidence supporting the robustness of our estimations. 2018-01-04 2024-06-21T09:11:17Z 2024-06-21T09:11:17Z Journal Article https://hdl.handle.net/10568/147105 en http://www.nber.org/papers/w18847 Open Access Wiley Gan, Li; Hernandez, Manuel A.; and Liu, Yanyan. 2018. Group lending with heterogeneous types. Economic Inquiry 56(2): 895-913. https://doi.org/10.1111/ecin.12541
spellingShingle models
microfinance
lending
economic development
economic behaviour
economics
econometric models
repayment
Gan, Li
Hernandez, Manuel A.
Liu, Yanyan
Group lending with heterogeneous types
title Group lending with heterogeneous types
title_full Group lending with heterogeneous types
title_fullStr Group lending with heterogeneous types
title_full_unstemmed Group lending with heterogeneous types
title_short Group lending with heterogeneous types
title_sort group lending with heterogeneous types
topic models
microfinance
lending
economic development
economic behaviour
economics
econometric models
repayment
url https://hdl.handle.net/10568/147105
work_keys_str_mv AT ganli grouplendingwithheterogeneoustypes
AT hernandezmanuela grouplendingwithheterogeneoustypes
AT liuyanyan grouplendingwithheterogeneoustypes