全球智库信息集成服务系统(G2TT): Rosca Meets Formal Credit Market

G2TT

来源类型	Working Paper
规范类型	报告
DOI	10.3386/w21683
来源ID	Working Paper 21683
	Rosca Meets Formal Credit Market
	Hanming Fang; Rongzhu Ke; Li-An Zhou
发表日期	2015-11-02
出版年	2015
语种	英语
摘要	Rotating Savings and Credit Association (Rosca) is an important informal financial institution in many parts of the world used by participants to share income risks. What is the role of Rosca when formal credit market is introduced? We develop a model in which risk-averse participants attempt to hedge against their private income shocks with access to both Rosca and the formal credit and investigate their interactions. Using the gap of the borrowing and saving interest rates as a measure of the imperfectness of the credit market, we compare three cases: (i) Rosca without credit market; (ii) Rosca with a perfect credit market; (iii) Rosca with an imperfect credit market. We show that a perfect credit market completely crowds out the role of Rosca. However, when credit market is present but imperfect, we show that Rosca and the formal credit market can complement each other in improving social welfare. Interestingly, we find that the social welfare in an environment with both Rosca and formal credit market does not necessarily increase monotonically as the imperfectness of the credit market converges to zero.
主题	Microeconomics ; Market Structure and Distribution ; Financial Economics ; Financial Institutions ; Development and Growth ; Development
URL	https://www.nber.org/papers/w21683
来源智库	National Bureau of Economic Research (United States)
引用统计
资源类型	智库出版物
条目标识符	http://119.78.100.153/handle/2XGU8XDN/579358
推荐引用方式 GB/T 7714	Hanming Fang,Rongzhu Ke,Li-An Zhou. Rosca Meets Formal Credit Market. 2015.