Anderson, Siwan: The Economics of Roscas and Intra-Household Resource Allocation
World Conference Econometric Society, 2000, Seattle

Siwan Anderson, Tilburg University
The Economics of Roscas and Intra-Household Resource Allocation
Session: C-8-4  Monday 14 August 2000  by Anderson, Siwan
This paper investigates individual motives to participate in rotating savings and credit associations (roscas). Detailed evidence of roscas in a Kenyan slum (Nairobi) shows that most roscas are predominantly composed of women. To explain this phenomenon, we propose an argument based on conflictual interactions within the household, where husbands and wives have differential savings patterns due to different valuations of an indivisible good. We test the empirical implications of the model using data collected from the Kenyan slum.
Submitted paper full-text in .pdf


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