Enforcement Problems in ROSCAs: Evidence from Benin

Autor:	Philippe LeMay-Boucher, Jacopo Bonan, Kyle McNabb
Rok vydání:	2019
Předmět:	Public economics Development studies Order (exchange) Social connectedness Geography Planning and Development Sustainability Business Development Field survey Enforcement Development policy Social capital
Zdroj:	The European Journal of Development Research. 31:1389-1415
ISSN:	1743-9728 0957-8811
DOI:	10.1057/s41287-019-00215-5
Popis:	Using data from a unique field survey in urban Benin, we investigate the sustainability of Rotating Savings and Credit Associations (ROSCAs) over time. We test the theories from the relevant literature that suggest that ROSCAs can be designed in a manner that minimizes the likelihood of enforcement problems occurring. The data paint a picture of inherent instability: over a 2-year period, one in three groups experienced enforcement problems; two-thirds of which collapsed. The results highlight the importance of the order of pot allocation, ruling structure, and social connectedness in minimizing the risk of enforcement problems occurring. Repeated interactions among members can also enhance sustainability over time.
Databáze:	OpenAIRE
Externí odkaz:	https://explore.openaire.eu/search/publication?articleId=doi_dedup___::693e8aea419e03fc4f51c6ee7028ebe1 https://doi.org/10.1057/s41287-019-00215-5 Zobrazit plný text záznamu Full text from SpringerLink