How important are endogenous peer effects in group lending?: Estimating a static game of incomplete information
We quantify the importance of endogenous peer effects in group lending programs by estimating a static game of incomplete information. Endogenous peer effects describe how one's behavior is affected by the behavior of her peers. Using a rich dataset from a group lending program in India, our empiric...
| Main Authors: | , , |
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| Format: | Journal Article |
| Language: | Inglés |
| Published: |
Wiley
2013
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| Subjects: | |
| Online Access: | https://hdl.handle.net/10568/152740 |
| _version_ | 1855516744406269952 |
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| author | Li, Shanjun Liu, Yanyan Deininger, Klaus |
| author_browse | Deininger, Klaus Li, Shanjun Liu, Yanyan |
| author_facet | Li, Shanjun Liu, Yanyan Deininger, Klaus |
| author_sort | Li, Shanjun |
| collection | Repository of Agricultural Research Outputs (CGSpace) |
| description | We quantify the importance of endogenous peer effects in group lending programs by estimating a static game of incomplete information. Endogenous peer effects describe how one's behavior is affected by the behavior of her peers. Using a rich dataset from a group lending program in India, our empirical analysis presents a robust finding of large peer effects. The preferred model suggests that the probability of a member making a full repayment would be 12 percentage points higher if all the fellow members were to make full repayment compared with a scenario in which none of the other members repay in full. We find that peer effects would be overestimated without controlling for unobserved group heterogeneity and that inconsistencies exist in the estimated effects of other variables without modeling peer effects and unobserved heterogeneity. Copyright © 2012 John Wiley & Sons, Ltd. |
| format | Journal Article |
| id | CGSpace152740 |
| institution | CGIAR Consortium |
| language | Inglés |
| publishDate | 2013 |
| publishDateRange | 2013 |
| publishDateSort | 2013 |
| publisher | Wiley |
| publisherStr | Wiley |
| record_format | dspace |
| spelling | CGSpace1527402025-04-08T18:26:32Z How important are endogenous peer effects in group lending?: Estimating a static game of incomplete information Li, Shanjun Liu, Yanyan Deininger, Klaus group lending We quantify the importance of endogenous peer effects in group lending programs by estimating a static game of incomplete information. Endogenous peer effects describe how one's behavior is affected by the behavior of her peers. Using a rich dataset from a group lending program in India, our empirical analysis presents a robust finding of large peer effects. The preferred model suggests that the probability of a member making a full repayment would be 12 percentage points higher if all the fellow members were to make full repayment compared with a scenario in which none of the other members repay in full. We find that peer effects would be overestimated without controlling for unobserved group heterogeneity and that inconsistencies exist in the estimated effects of other variables without modeling peer effects and unobserved heterogeneity. Copyright © 2012 John Wiley & Sons, Ltd. 2013-08 2024-10-01T13:55:09Z 2024-10-01T13:55:09Z Journal Article https://hdl.handle.net/10568/152740 en Limited Access Wiley Li, Shanjun; Liu, Yanyan; Deininger, Klaus 2013. How important are endogenous peer effects in group lending? Estimating a static game of incomplete information. Journal of Applied Econometrics 28(5) : 864-882 |
| spellingShingle | group lending Li, Shanjun Liu, Yanyan Deininger, Klaus How important are endogenous peer effects in group lending?: Estimating a static game of incomplete information |
| title | How important are endogenous peer effects in group lending?: Estimating a static game of incomplete information |
| title_full | How important are endogenous peer effects in group lending?: Estimating a static game of incomplete information |
| title_fullStr | How important are endogenous peer effects in group lending?: Estimating a static game of incomplete information |
| title_full_unstemmed | How important are endogenous peer effects in group lending?: Estimating a static game of incomplete information |
| title_short | How important are endogenous peer effects in group lending?: Estimating a static game of incomplete information |
| title_sort | how important are endogenous peer effects in group lending estimating a static game of incomplete information |
| topic | group lending |
| url | https://hdl.handle.net/10568/152740 |
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