Microcredit. The solution to failures in the credit market

Darbas anglų kalba. Paskolų rinka. Introduction. Inefficiency in the credit market. Credit constraints. Defining market failures in the credit market. Imperfect information in the credit market. Agency problems. Adverse selection. Moral hazard. Microcredit: group lending. The method of group lending: example from Bangladesh. Overcoming adverse selection. Overcoming moral hazard. Limits to group lending. The economic impacts of microcredit. How microcredit affects households. Microcredit: does it work? Institutions and sustainability. The failure of state-owned development banks. Microcredit institutions. Cost-benefit analysis. Smart subsidies. Conclusion.