par Bourlès, Renaud;Cozarenco, Anastasia
;Henriet, Dominique;Joutard, Xavier
Publication Publié, 2015-07-07
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Publication Publié, 2015-07-07
Travail de recherche/Working paper
Résumé : | The microcredit market, where inexperienced micro-borrowers meet experienced microfinance institutions (MFIs), is subject to reversed asymmetric information. Thus, MFIs' choices can shape borrowers' beliefs and their behavior. We analyze how this mechanism may influence microfinance institution decisions to allocate business training. By means of a theoretical model, we show that superior information can lead the MFI not to train (or to train less) riskier borrowers. We then investigate whether this mechanism is empirically relevant, using data from a French MFI.Confirming our theoretical reasoning, we find a non-monotonic relationship between the MFI's decision to train and the risk that micro-borrowers represent. |