Kundu, Amit and Mitra, Suranjana (2009): Determinants Influencing a Rural Household's Preference to Join Individual Liability or Joint Liability Micro Credit Contract Operated by Primary Agricultural Credit Society. Forthcoming in: Microfinance Review , Vol. 2, No. July-Dec, 2009 (29. March 2010): pp. 45-56.
This is the latest version of this item.
Download (200kB) | Preview
Agriculture credit which is one form of micro credit mainly for the small and marginal farmers can be borrowed under two different types of short-term credit contracts: individual liability credit contract or joint liability credit contract under Primary Agricultural Credit Society (PACS). The basic objective of this paper is to identify the factors which influence a rural household to link himself directly with PACS for credit contract under individual liability micro credit contract or to take the initiative to join self-help group under PACS so that if required he/she can take credit under joint liability credit contract. Results reveal that higher education level and age reduces the probability of a rural people to join self-help group but aged farmers with certain size of land prefers to take credit under individual liability loan contract after taking direct membership of PACS. But ownership of land and its size is not a decision making factor during the time of formation self-help groups under PACS. Actually poor people with zero or small size of assets i.e. mainly the risky type borrowers were not ignored during the time of group formation.
|Item Type:||MPRA Paper|
|Original Title:||Determinants Influencing a Rural Household's Preference to Join Individual Liability or Joint Liability Micro Credit Contract Operated by Primary Agricultural Credit Society|
|Keywords:||Agricultural credit, Micro credit, Individual liability, Joint liability, Primary Agricultural Credit Society|
|Subjects:||?? C42 ??
C - Mathematical and Quantitative Methods > C2 - Single Equation Models ; Single Variables > C21 - Cross-Sectional Models ; Spatial Models ; Treatment Effect Models ; Quantile Regressions
G - Financial Economics > G2 - Financial Institutions and Services > G21 - Banks ; Depository Institutions ; Micro Finance Institutions ; Mortgages
|Depositing User:||AMIT KUNDU|
|Date Deposited:||16. Apr 2010 23:56|
|Last Modified:||01. Jan 2016 21:45|
1.Ahlin, C. and Townsend. R. (December 2002). ‘Using repayment Data to test Across Models of Joint Liability lending, Working Paper No. 02-W27, Department of Economics, Venderbilt University.
2.Ahlin, C. and Townsend. R. (October 2003). ‘Selection into and across Credit contracts: Theory and Field Research’, Working Paper no. 03-W23, Department of Economics, Venderbilt University.
3.Armendariz, B. and Morduch, J. (2005). ‘The Economics of Microfinance’, MIT Press.
4.Chopra, S. (July 1998). ‘The Structure and Organization of the Agricultural Credit in India: Relationship between Primary Societies, Apex Bodies and CDFAs’, Paper Presented at the Inter-Regional Workshop at Johannesburg.
5.Conning, J. (September 2000). ‘Monitoring by Delegates or by Peers? Joint Liability Loans under Moral Hazard’. Centre of Development Economics, Paper #161, Williams College, Massachusetts.
6.Fedele, A. (November 2005). ‘Joint Liability Lending in microcredit Markets with Adverse selection: a Survey’, Department of /statistics, University of Milano-Bicocca.
7.Ghatak, M. (July 2000). ‘Screening by the Company You Keep: Joint Liability Lending and the Peer Selection Effect’, The Economic Journal, 110, 601-631.
8.Ghatak, M. and Guinnane, T. (March 1999). ‘The economics of lending with joint liability: theory and practice’, Journal of Development /economics, Vol. 60, 195-228.
9.Gine, X. and Karlan, D., (May 2007). ‘Group versus Individual Liability: A Field Experiment in the Philippines’.
10.Harper, M., Berkhof. A. and Ramakrishna, R.V. (April 2003). ‘SHG-Bank Linkage- A Tool for Reforms in Cooperatives?’ Economic and Political Weekly, pp.1720-26.
11.Huppi, M. and Feder, G. (1990). ‘The role of Groups and Credit Cooperatives in Rural Lending’, The World Bank Research Observer, Vol.5, No.2, pp 187-204.
12.Kritikos, A. and Vigenina, D. (2005). ‘Key factors of Joint Liability Loan Contract-An Empirical Analysis’, KYKLOS, Vol.58, No. 2, 213-238.
13.Kundu, A. (May 2009). ‘Choice Between Microfinance System Operating on the Basis of Individual Liability Loan Contract or through Joint Liability Loan Contract’, MRPA Paper No.14981.
14.Lehner, M. (November 2008). ‘Group Versus Individual lending in Microfinance’, Discussion Paper 2008-24, Department of Economics, University of Munich.
15.Madajewicz, M. (May 2004). ‘Joint Liability versus Individual Liability in Credit Contracts’, Discussion Papers 0304-18, Department of Economics, Columbia University.
16.Morduch, J. (December 1999). ‘The Microfinance Promise’, Journal of Economic Literature, Vol. XXXVII 37 (4): 1569-1614.
17.Roy Chowdhury, P. (2005). ‘Group lending: Sequential Financing, Lender Monitoring and Joint Liability’, Journal of Development Economics 77: 415-439.
18.Sarangi, N. (June 2007). ‘Microfinance and the Rural Poor-Impact Assessment Based on Fieldwork in Madhya Pradesh, India’
19.Satish, P. (April 2005). ‘Mainstreaming of Indian Microfinance’, Economic and Political Weekly, pp.1731-39.
20.Simtowe, F. and Zeller, M. (October 2006)‘Determinants of moral hazard in micro finance: Empirical evidence from joint liability lending programs in Malawi, MRPA Paper No.461.
Available Versions of this Item
Determinants Influencing a Rural Household's Preference to Join Individual Liability or Joint Liability Micro Credit Contract Operated by Primary Aagricultural Credit Society. (deposited 31. Mar 2010 13:36)
- Determinants Influencing a Rural Household's Preference to Join Individual Liability or Joint Liability Micro Credit Contract Operated by Primary Agricultural Credit Society. (deposited 16. Apr 2010 23:56) [Currently Displayed]