Behavioral impact of debt-output nexus in joint liability group lending
Evidence from the Israeli Moshavim
Bibliographic Data
| ID | 12540211 |
|---|---|
| Authors | Sagit Barel-Shaked (0000-0003-2776-4986, Western Galilee College, corresponding author), Rachel Lipshits (0000-0001-7727-9474, Department of Industrial Engineering and Management, ORT Braude College of Engineering, Karmiel, Israel) |
| Year | 2021 |
| Volume | 27 |
| Issue | 3 |
| Pages | 558-576 |
| Publication date | 2021-05-04 |
| Open Access | No |
| Type | ARTICLE |
| Venue | Israel Affairs (JOURNAL) |
| Journal identifiers | ISSN: 1353-7121 • E-ISSN: 1743-9086 |
| Publisher | Taylor & Francis (PUBLISHER • GB) |
| DOI | 10.1080/13537121.2021.1915551 |
| OpenAlex | W3162080436 |
| Language | EN |
| References cited | 28 |
The Israeli Moshavim were agricultural cooperative associations grouped into regional procurement associations, operated under a mechanism of joint liability lending until the 1985 debt-crisis. Unique historical financial-panel-data offers behavioural insights into the joint liability group lending, through constructing Moshavim’s Debt-To-Output (DTO) ratio distribution. The right-tailed exponential distribution captures the finding that a small portion of the Moshavim were debtors. A semi-parametric model synthesises between the debtors and the creditors. While a joint liability mechanism might boost risk-receptiveness and excessive optimism concerning the peer’s accountability for some, it carries a reversed effect for others. Thus, the failure of the mechanism might be unavoidable
Accountability · Business · Creditor · Debt · Econometrics · Economics · Joint and several liability · Liability · Mechanism (biology · Monetary economics · Nexus (standard · Panel data · Political science · Strict liability · Banking stability, regulation, efficiency · Islamic Finance and Banking Studies · Law · Microfinance and Financial Inclusion · Finance
Thy Neighbor's Keeper
Peer Monitoring and Credit Markets
An Experiment on Risk Taking and Evaluation Periods
Experimental methods
Using Generalized Estimating Equations for Longitudinal Data Analysis
Longitudinal data analysis using generalized linear models
Prospect Theory
Is There a Debt-Threshold Effect on Output Growth
Risk aversion and the character of the individual’s place of residence
Group lending, local information and peer selection
Group lending, repayment incentives and social collateral
Psychological construal of economic behavior
Using Repayment Data to Test across Models of Joint Liability Lending
Sovereign Debt and Joint Liability
Institutional Environment, Ideological Commitment, and Farmers' Time Allocation
Village and Larger Economies
| Highly cited | No |
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