10.6084/m9.figshare.5117500.v1
Jonathan Bauchet
Jonathan
Bauchet
Vance Larsen
Vance
Larsen
ROSCA Composition and Repayment: Evidence from Taiwanese Bidding ROSCAs
Taylor & Francis Group
2017
wisdom groups
ROSCA Composition
socially-connected participants
experience repayment problems
bidding ROSCAs
credit associations
ROSCA failure
group influence contribution behaviour
emergency credit
Taiwanese Bidding ROSCAs Rotating savings
management tool
analyse data
Taiwanese bidding ROSCAs
2017-06-19 10:59:35
Journal contribution
https://tandf.figshare.com/articles/journal_contribution/ROSCA_Composition_and_Repayment_Evidence_from_Taiwanese_Bidding_ROSCAs/5117500
<p>Rotating savings and credit associations (ROSCAs) are widespread and remain a key financial management tool for poor individuals. We analyse data from Taiwanese bidding ROSCAs and focus on how social relationships within the group influence contribution behaviour and ROSCA failure. We find that less socially-connected participants were more likely to receive the pot early in the cycle, which increases their incentive to default, yet contrary to accepted wisdom groups including more outsiders were not more likely to experience repayment problems. Our results highlights how bidding ROSCAs can be a versatile device that provide profitable savings while allowing for emergency credit.</p>