香港浸会大学柯荣住讲座通知
发布时间: 2018-10-10 浏览次数: 10

讲座人:柯荣住

讲座主题: Rosca Meets Formal Credit Market

单位: 香港浸会大学

职称:助理教授

讲座地点:沁园1号楼409教室

时间:20181011  下午2:00-3:30

 

Rosca meets financial market (with Hanming Fang and Li-an Zhou), NBER Working Paper 21683.

Rotating Savings and Credit Association (Rosca) is an important informal financial institution in many parts of the world used by participants to share income risks. What is the role of Rosca when formal credit market is introduced? We develop a model in which risk-averse participants attempt to hedge against their private income shocks with access to both Rosca and a formal credit market and investigate their interactions. Using the gap of the borrowing and saving interest rates as a measure of the imperfectness of the credit market, we compare three cases: (i) Rosca without credit market; (ii) Rosca with a perfect credit market; (iii) Rosca with an imperfect credit market. We show that a perfect credit market completely crowds out the role of Rosca. However, when credit market is present but imperfect, we show that Rosca and the formal credit market can complement each other in improving social welfare. Interestingly, we find that the social welfare in an environment with both Rosca and formal credit market does not necessarily increase monotonically as the imperfectness of the credit market converges to zero.