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Is the credit worth it? For-profit lenders in microfinance with rational and behavioral borrowers
Stockholm University, Faculty of Social Sciences, Institute for International Economic Studies.
2018 (English)In: Annals of Public and Cooperative Economics, ISSN 1370-4788, E-ISSN 1467-8292, Vol. 89, no 1, p. 175-199Article in journal (Other academic) Published
Abstract [en]

The bulk of the literature on microcredit has focused on either not-for-profit lenders or assumes a perfectly competitive, zero-profit market equilibrium.Yet the market has experienced a significant shift toward for-profit lending and the as-sumptions of perfect competition are likely to be too strong in many locations. We reviewthe state of the literature on for-profit lending in microcredit, consider its implicationsfor both conventionally ‘rational’ borrowers and for borrowers with behavioral biases,and point out directions for future research.

Place, publisher, year, edition, pages
2018. Vol. 89, no 1, p. 175-199
Keywords [en]
Microcredit, for-profit lending, behavioral borrowers
National Category
Economics and Business
Identifiers
URN: urn:nbn:se:su:diva-163028DOI: 10.1111/apce.12189OAI: oai:DiVA.org:su-163028DiVA, id: diva2:1269773
Available from: 2018-12-11 Created: 2018-12-11 Last updated: 2018-12-17Bibliographically approved

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