Micro-finance Competition with Motivated MFIs
In this paper we examine the effect of increased MFI competition, focusing on its implications for borrower targeting, both in the presence and the absence of double-dipping. In the absence of competition we find that the loans are more likely to go to relatively richer borrowers whenever inequality...
Saved in:
Main Authors: | , |
---|---|
Format: | text |
Language: | English |
Published: |
Institutional Knowledge at Singapore Management University
2012
|
Subjects: | |
Online Access: | https://ink.library.smu.edu.sg/soe_research/1327 https://ink.library.smu.edu.sg/context/soe_research/article/2326/viewcontent/MicrofinancecompetitionwithmotivatedMFIs.pdf |
Tags: |
Add Tag
No Tags, Be the first to tag this record!
|
Institution: | Singapore Management University |
Language: | English |
id |
sg-smu-ink.soe_research-2326 |
---|---|
record_format |
dspace |
spelling |
sg-smu-ink.soe_research-23262019-04-19T14:29:23Z Micro-finance Competition with Motivated MFIs GUHA, Brishti ROY CHOWDHURY, Prabal In this paper we examine the effect of increased MFI competition, focusing on its implications for borrower targeting, both in the presence and the absence of double-dipping. In the absence of competition we find that the loans are more likely to go to relatively richer borrowers whenever inequality is not too large, and the technology is sufficiently convex. In the presence of competition, the results depend on whether double-dipping is feasible or not. In case double-dipping is not feasible, we find that the MFIs necessarily target the richer borrowers. Interestingly, it turns out that double-dipping may encourage the MFIs to give loans to the poor, rather than the rich. Further, our analysis raises doubts regarding the benefits of encouraging coordination among the MFIs. 2012-02-01T08:00:00Z text application/pdf https://ink.library.smu.edu.sg/soe_research/1327 https://ink.library.smu.edu.sg/context/soe_research/article/2326/viewcontent/MicrofinancecompetitionwithmotivatedMFIs.pdf http://creativecommons.org/licenses/by-nc-nd/4.0/ Research Collection School Of Economics eng Institutional Knowledge at Singapore Management University Micro-finance competition motivated MFIs inequality borrower targeting technology Finance |
institution |
Singapore Management University |
building |
SMU Libraries |
continent |
Asia |
country |
Singapore Singapore |
content_provider |
SMU Libraries |
collection |
InK@SMU |
language |
English |
topic |
Micro-finance competition motivated MFIs inequality borrower targeting technology Finance |
spellingShingle |
Micro-finance competition motivated MFIs inequality borrower targeting technology Finance GUHA, Brishti ROY CHOWDHURY, Prabal Micro-finance Competition with Motivated MFIs |
description |
In this paper we examine the effect of increased MFI competition, focusing on its implications for borrower targeting, both in the presence and the absence of double-dipping. In the absence of competition we find that the loans are more likely to go to relatively richer borrowers whenever inequality is not too large, and the technology is sufficiently convex. In the presence of competition, the results depend on whether double-dipping is feasible or not. In case double-dipping is not feasible, we find that the MFIs necessarily target the richer borrowers. Interestingly, it turns out that double-dipping may encourage the MFIs to give loans to the poor, rather than the rich. Further, our analysis raises doubts regarding the benefits of encouraging coordination among the MFIs. |
format |
text |
author |
GUHA, Brishti ROY CHOWDHURY, Prabal |
author_facet |
GUHA, Brishti ROY CHOWDHURY, Prabal |
author_sort |
GUHA, Brishti |
title |
Micro-finance Competition with Motivated MFIs |
title_short |
Micro-finance Competition with Motivated MFIs |
title_full |
Micro-finance Competition with Motivated MFIs |
title_fullStr |
Micro-finance Competition with Motivated MFIs |
title_full_unstemmed |
Micro-finance Competition with Motivated MFIs |
title_sort |
micro-finance competition with motivated mfis |
publisher |
Institutional Knowledge at Singapore Management University |
publishDate |
2012 |
url |
https://ink.library.smu.edu.sg/soe_research/1327 https://ink.library.smu.edu.sg/context/soe_research/article/2326/viewcontent/MicrofinancecompetitionwithmotivatedMFIs.pdf |
_version_ |
1770571166861230080 |