Product Design in Microfinance
Carolina Laureti
Thesis presented in order to obtain the degree of PhD in Economics and Management Science
Jury of the Thesis:
Professor Catherine Guirkinger, Université de Namur Professor Niels Hermes, University of Groningen Professor Marek Hudon, Université Libre de Bruxelles
Professor Marc Labie, Université de Mons, Promoter of the Thesis
Professor Ariane Szafarz, Université Libre de Bruxelles, Promoter of the Thesis Professor Melanie Volral, Université de Mons
2
Table of Contents
Pages
INTRODUCTION 5
CHAPTER 1. Product Flexibility in Microfinance: A Survey 12 1. Introduction
2. Types of Flexibility
3. Flexibility versus Discipline 4. Design of Flexible Products 5. Conclusion 13 15 19 23 28
CHAPTER 2. Innovative Flexible Products in Microfinance 33 1. Introduction
2. Theoretical Insights from the Literature 3. Products Balancing Flexibility and Discipline 4. Lessons Learned 5. Conclusion 34 36 40 50 52
CHAPTER 3. The Debt Puzzle in Dhaka’s Slums: Do Liquidity Needs Explain Co-Holding? 60 1. Introduction 2. Methodology 3. Data 4. Regression Results
3
CHAPTER 4. Having it Both Ways: A Theory of the Banking Firm with Time-Consistent and Time-Inconsistent Depositors
95 1. Introduction
2. Stylized Facts from Bangladesh 3. The Model
4. Equilibrium Liquidity Premium
5. Impact of the Proportion of Time-Inconsistent Agents 6. Conclusion 96 98 102 107 117 121 CONCLUSION 130 REFERENCES 135
