What is it about?
We try to show through experimental methods how economic and psychological threat is perceived by borrowers of microfinance in case of potential default.
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Why is it important?
We develop measurement models of microfinance group processes like fear of reprisal, peer pressure and joint liability. Through experimental methodology we show that microfinance borrowers know when to invoke peer pressure and joint liabilities.
Perspectives
Hope it helps practitioners of microfinance to develop a perspective and preempt a crises, specially if they observe that the borrowers are reluctant to pay for the peers in case of potential default.
Anjana Dube
Read the Original
This page is a summary of: Microfinance Group Processes and Crises: Responses to Economic and Psychological Threats, The Journal of Development Studies, November 2018, Taylor & Francis,
DOI: 10.1080/00220388.2018.1539475.
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