| ID | 178308 |
| Title Proper | Behavioral impact of debt-output nexus in joint liability group lending |
| Other Title Information | evidence from the Israeli Moshavim |
| Language | ENG |
| Author | Barel-Shaked, Sagit ; Lipshits, Rachel |
| Summary / Abstract (Note) | 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. |
| `In' analytical Note | Israel Affairs Vol. 27, No.3; Jun 2021: p.558-576 |
| Journal Source | Israel Affairs Vol: 27 No 3 |
| Key Words | Israel ; Debt Aversion ; Joint Liability Group Lending ; Moshavim ; Risk Receptiveness ; Exponential Distribution ; Semi - Parametric |