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on Microfinance |
| By: | Karlan, Dean (Yale University); Osei-Akoto, Isaac (University of Ghana); Osei, Robert Darko (University of Ghana); Udry, Christopher (Yale University) |
| Abstract: | The investment decisions of small-scale farmers in developing countries are conditioned by their financial environment. Binding credit market constraints and incomplete insurance can reduce investment in activities with high expected profits. We conducted several experiments in northern Ghana in which farmers were randomly assigned to receive cash grants, grants of or opportunities to purchase rainfall index insurance, or a combination of the two. Demand for index insurance is strong, and insurance leads to significantly larger agricultural investment and riskier production choices in agriculture. The salient constraint to farmer investment is uninsured risk: when provided with insurance against the primary catastrophic risk they face, farmers are able to find resources to increase expenditure on their farms. Demand for insurance in subsequent years is strongly increasing in a farmer's own receipt of insurance payouts, and with the receipt of payouts by others in the farmer's social network. Both investment patterns and the demand for index insurance are consistent with the presence of important basis risk associated with the index insurance, and with imperfect trust that promised payouts will be delivered. |
| JEL: | C93 D24 D92 G22 O12 O13 O16 Q12 Q14 |
| Date: | 2012–10 |
| URL: | http://d.repec.org/n?u=RePEc:ecl:yaleco:110&r=mfd |
| By: | Espen Villanger |
| Abstract: | Studies of microbusiness in poor countries find high marginal returns to capital but also lack of investments. This paper analyzes how caste-based segmentation in the capital and labor markets can act as obstacles to investment in microbusiness in rural in Nepal and also explain high marginal returns to capital. Using a household survey purposively designed for assessing caste as a barrier to microbusiness growth, we find that segmentation leads to inefficient allocation of entrepreneurial talent, labor and capital. This, in turn, leads to lower wages and smaller and less profitable businesses for low castes (Dalits) and lower economic growth of the local economy. The study covers a range of barriers to doing business and finds that in addition to caste segmentation, access to capital and lack of skills and knowledge are the main constraints to doing microbusiness in the studied areas. |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:chm:wpaper:wp2012-9&r=mfd |
| By: | Pascal Billand (Université de Lyon, Lyon, F-69007, France ; CNRS, GATE Lyon St Etienne,F-69130 Ecully, France ; Université Jean Monnet, Saint-Etienne, F-42000, France.); Christophe Bravard (Université Grenoble 2 ; UMR 1215 GAEL, F-38000 Grenoble, France ; CNRS, GATE Lyon St Etienne, Saint-Etienne, F-42000, France); Marie Sudipta Sarangi (DIW Berlin and Louisiana State University) |
| Abstract: | We study the formation of mutual insurance networks in a model where every agent who obtains more resources gives a fixed amount of resources to all agents who have obtained less resources. The low resource agent must be directly linked to the high resource agent to receive this transfer. We identify the pairwise stable networks and efficient networks. Then, we extend our model to situations where agents differ in their generosity with regard to the transfer scheme. We show that there exist conditions under which in a pairwise stable network agents who provide the same level of transfers are linked together, while there are no links between agents who provide high transfers and agents who provide low transfers. |
| Keywords: | Mutual insurance networks, Pairwise stable networks, Efficient networks |
| JEL: | C72 D81 D8 |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:gat:wpaper:1234&r=mfd |
| By: | Vitalie Bumacov (Chaire Banque Populaire en Microfinance du Groupe ESC Dijon Bourgogne - Commencez à saisir le nom d'un établissement); Frédéric Lanet (Chaire Banque Populaire en Microfinance du Groupe ESC Dijon Bourgogne - Commencez à saisir le nom d'un établissement); Arvind Ashta (Chaire Banque Populaire en Microfinance du Groupe ESC Dijon Bourgogne - Commencez à saisir le nom d'un établissement, CEREN - Centre de Recherche sur l'Entreprise - Start entering a institution, university, grande ecole) |
| Abstract: | L'étude présente en détail le processus de décision et d'implémentation d'un système informatisé de gestion (SIG) de type Open Source dans l'institution de microfinance (IMF) Airdie - active en Languedoc-Roussillon depuis 1994. Open Source signifie code source libre, donc la liberté de pouvoir modifier la structure du code de programmation du SIG pour l'ajuster à ses besoins et partager avec la communauté de développeurs les résultats de ces ajustements. Airdie a choisi d'implémenter le SIG français Octopus. |
| Keywords: | Microfinance; SIG; Open Source; Logiciel libre |
| Date: | 2012–12–15 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:hal-00770001&r=mfd |