The Economic Returns to Social Interaction: Experimental Evidence from Microfinance

Benjamin Feigenberg, Erica Field and Rohini Pande

2013

In this study, microfinance clients were randomly assigned to repayment groups that met either weekly or monthly during their first loan cycle, and then graduated to identical meeting frequency for their second loan. Long-run survey data and a follow-up public goods experiment reveal that clients initially assigned to weekly groups interact more often and exhibit a higher willingness to pool risk with group members from their first loan cycle nearly two years after the experiment.

Type

Working Paper

Thematic Area

Financial Inclusion