Repayment performance in group-based credit programs in Bangladesh: an empirical analysis

This paper analyzes the repayment rates of credit groups belonging to three group-based credit programs in Bangladesh: the Association for Social Advancement (ASA), the Bangladesh Rural Advancement Committee (BRAC), and the Rangpur Dinajpur Rural Service (RDRS). Hypotheses are drawn from economic th...

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Autores principales: Sharma, Manohar, Zeller, Manfred
Formato: Artículo preliminar
Lenguaje:Inglés
Publicado: International Food Policy Research Institute 1996
Materias:
Acceso en línea:https://hdl.handle.net/10568/157105
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author Sharma, Manohar
Zeller, Manfred
author_browse Sharma, Manohar
Zeller, Manfred
author_facet Sharma, Manohar
Zeller, Manfred
author_sort Sharma, Manohar
collection Repository of Agricultural Research Outputs (CGSpace)
description This paper analyzes the repayment rates of credit groups belonging to three group-based credit programs in Bangladesh: the Association for Social Advancement (ASA), the Bangladesh Rural Advancement Committee (BRAC), and the Rangpur Dinajpur Rural Service (RDRS). Hypotheses are drawn from economic theory relating group responsibility, and the resulting monitoring by peers, to a more effective enforcement of contractual obligations as well as to improved ability of the group as a whole to repay loans. Specific tests are performed on the following hypothesized determinants: group size, size of loans, degree of loan rationing, enterprise mix within groups, demographic characteristics, social ties and status, and occurrence of idiosyncratic shocks. Analysis is conducted using TOBIT maximum likelihood procedures. Implications for policy and institutional design are discussed."
format Artículo preliminar
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publishDate 1996
publishDateRange 1996
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record_format dspace
spelling CGSpace1571052025-11-06T07:18:54Z Repayment performance in group-based credit programs in Bangladesh: an empirical analysis Sharma, Manohar Zeller, Manfred credit research methodology This paper analyzes the repayment rates of credit groups belonging to three group-based credit programs in Bangladesh: the Association for Social Advancement (ASA), the Bangladesh Rural Advancement Committee (BRAC), and the Rangpur Dinajpur Rural Service (RDRS). Hypotheses are drawn from economic theory relating group responsibility, and the resulting monitoring by peers, to a more effective enforcement of contractual obligations as well as to improved ability of the group as a whole to repay loans. Specific tests are performed on the following hypothesized determinants: group size, size of loans, degree of loan rationing, enterprise mix within groups, demographic characteristics, social ties and status, and occurrence of idiosyncratic shocks. Analysis is conducted using TOBIT maximum likelihood procedures. Implications for policy and institutional design are discussed." 1996 2024-10-24T12:47:22Z 2024-10-24T12:47:22Z Working Paper https://hdl.handle.net/10568/157105 en Open Access application/pdf International Food Policy Research Institute Sharma, Manohar; Zeller, Manfred. 1996. Repayment performance in group-based credit programs in Bangladesh: an empirical analysis. FCND Discussion Paper 15. Washington, DC: International Food Policy Research Institute. https://hdl.handle.net/10568/157105
spellingShingle credit
research
methodology
Sharma, Manohar
Zeller, Manfred
Repayment performance in group-based credit programs in Bangladesh: an empirical analysis
title Repayment performance in group-based credit programs in Bangladesh: an empirical analysis
title_full Repayment performance in group-based credit programs in Bangladesh: an empirical analysis
title_fullStr Repayment performance in group-based credit programs in Bangladesh: an empirical analysis
title_full_unstemmed Repayment performance in group-based credit programs in Bangladesh: an empirical analysis
title_short Repayment performance in group-based credit programs in Bangladesh: an empirical analysis
title_sort repayment performance in group based credit programs in bangladesh an empirical analysis
topic credit
research
methodology
url https://hdl.handle.net/10568/157105
work_keys_str_mv AT sharmamanohar repaymentperformanceingroupbasedcreditprogramsinbangladeshanempiricalanalysis
AT zellermanfred repaymentperformanceingroupbasedcreditprogramsinbangladeshanempiricalanalysis