[Blueboard] Department of Economics-Research on "Non-Market Determinants in Rural Credit Repayment"

ncabiles at ateneo.edu ncabiles at ateneo.edu
Tue Jan 8 09:52:30 PHT 2008

Research Seminar on "Non-market Determinants in Rural Credit Repayment"

The seminar presents research findings on repayment rates on loans  
taken from rural
individual and institutional lenders in the Philippines. Results show  
that repayment
rates are high when the borrower has social ties with the lender but  
low if the ties are
too strong, suggesting enforcement difficulties in close  
relationships. Repayment rates
are also low with civic connections and greater assets, which indicate  
the influence of
non-market elements in settling debts. Factors that improve repayment  
rates include
penalties, interest rates, and collateral requirements. Results also  
suggest an
interesting condition where households use flexibility in repayment  
when they can but are
diligent when they should be.

Speaker         : Reuben R. Hermoso
Date            : Friday, 11 January 2008, 4:30PM
Place           : Ricardo Leong Center for Chinese Studies Conference  
Room  (Rm.206),
Ricardo & Dr. Rosita Leong Hall

Further information, contact the Department of Economics (local 5220 to 22)

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