Microfinance circles provide two kinds of insurance: intertemporal smoothing (a missed payment can be made up later) and cross-sectional risk-pooling (the whole group is jointly responsible for the loan, with explicit reciprocity over time).
factualpending
Speaker
Michael MungerEvidence Quote
“there's a explicit kind of reciprocity where the it's the entire group that's responsible for the loan not in the individual so I think there's two aspects to the insurance of it”
Created: 6/17/2026, 10:29:24 AM
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