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Moral hazard

Louisiana State University

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Essays On Group Lending: Evidence From Jordan, Moh'd Al-Azzam Jan 2006

Essays On Group Lending: Evidence From Jordan, Moh'd Al-Azzam

LSU Doctoral Dissertations

Group lending has received a great attention from economists and policymakers for its successful delivery of credit to poor borrowers and its role in alleviating poverty in the developing countries. The success of group lending in providing credit to poor borrowers has been attributed to its ability to mitigate the asymmetry of information and enforcement problems in credit markets. The ability of group lending institutions to overcome the asymmetry of information and enforcement problems has been theorized to be the driving force behind their outreach to the poor, their sustainability, and their repayment performance. While there is a host of …