Good intentions pave the way to … the local moneylender

C-Tier
Journal: Economics Letters
Year: 2013
Volume: 118
Issue: 3
Pages: 466-469

Authors (2)

Arnold, Lutz G. (Universität Regensburg) Booker, Benedikt (not in RePEc)

Score contribution per author:

0.503 = (α=2.01 / 2 authors) × 0.5x C-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

Access to microfinance entails a risk of over-indebtedness. A naïve present-biased micro-borrower may roll over debt after failure of an investment project financed with an MFI loan, even though she planned not to do so and would not have taken the MFI loan if she had been aware of the time inconsistency of her plan. Similarly, she may use a new loan to repay and end up over-indebted if she discounts the future too strongly relative to her true preferences.

Technical Details

RePEc Handle
repec:eee:ecolet:v:118:y:2013:i:3:p:466-469
Journal Field
General
Author Count
2
Added to Database
2026-01-24