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European Association of Agricultural Economists >
2008 International Congress, August 26-29, 2008, Ghent, Belgium >
Please use this identifier to cite or link to this item:
http://purl.umn.edu/44202
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| Title: | Joint-liability borrowing decisions under risk: Empirical evidence from rural microfinance in Ethiopia |
| Authors: | Berhane Tesfay, G.
Gardebroek, Cornelis |
| Keywords: | Microfinance
risk
dynamic panel probit |
| Issue Date: | 2008 |
| Abstract: | This paper investigates borrowing decisions
of rural households from a microfinance in Tigray,
Ethiopia using household panel data on 5 years and
a dynamic panel probit model. The theoretical
model takes two types of risk involved in joint-liability
lending explicitly into account: risk of
partner failure and the risk of losing future access to
credit. Empirical results show that these risks are
important in explaining borrowing decisions.
Another finding is that the probability of repeat-borrowing
is higher than the probability of new
participation, with possible implications that
perceived joint-liability threats deter participation
and easing stringent punishments might help poor
households’ access to credit. |
| URI: | http://purl.umn.edu/44202 |
| Institution/Association: | European Association of Agricultural Economists>2008 International Congress, August 26-29, 2008, Ghent, Belgium |
| Total Pages: | 5 |
| Collections: | 2008 International Congress, August 26-29, 2008, Ghent, Belgium
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