Munich Personal RePEc Archive
Determinants of Moral Hazard in
Microfinance: Empirical Evidence from Joint Liability Lending Programs in
Malawi
Simtowe, Franklin and Zeller, Manfred
12 October 2006
Online at https://mpra.ub.uni-muenchen.de/461/
MPRA Paper No. 461, posted 15 Oct 2006 UTC
!! " #
! "
"
" $% &!'!(
) * * $)**(
+ ,
$- .///(
0
!
"
# $ # %
"
)**
1 $&!!/( 2
2 $&!!!( 1
)**
,
3
% 1
1 2 2 $&!!!(
4
,
2 2 ,
5 5
$ (
3 6 +
7, 4
8 $.///(
# 4 - $ #4-(
$ (
#4- .9
#4- %
: 2 2 $&!!!(
8 $&!!;( < $&!!=( $&!!!( :
4 < # $ 4<# (
&!!! !!
# 4 - , $ #4-( " .
> ? 9
=
&
# $ " $ $
# %$ &
$&!!'(
,
$ .//>(
4 &
@ 4
"
"
% #
2
$&!!! ( "
#
'
()*
% + , -
.
' /
() % +
,
.
, /
0.
0
, .
(
, .
/ - /
1 2 1 ,"334.
5
" & 4
4 4
'
%
$ 4 ( "
1 4
A
,
$ " ( "
"
# # "
)** : $&!!!(
% $.//9( :
2
0
% $.//9(
@
2 $&!!! ( 2
3 2
3 2
3
1 $&!!/(
4
1 6
1 3 "
6
- $.//.( 3
" - "
3 %
4 $&!!>(
2 B
4
- $.///( 3
8 $&!!;( 8
8 $&!!;( < $&!!=(
B - $&!!9(
C
$.//>(
D B
% $
(
( %$ )
4 1 $.///(
D
!
!!!!!!!!!
!!!!!!!!
!!!!!!!!!
<
7
<
$ ( , 0 "
. ,
0 "
: < ,
6 !!!!! . , . $&(
$ "&(
.
, , . $ - ( $.(
E& F
, $
( 6
.
, $ #( $>(
B 1 $&!!/(
4
G $ (
D
0 / /
3 &
3 B
$ (
6
$9(
B 3
"
" $ H/( 4
3 A
3 >
"
4 .
, "
$=(
A ,
&
5 , 888.
9 :
" ! :.
,
) "
.
, $'(
, ; 6
;! $;(
3
3
%
2 2 $&!!!(
8 $&!!;(
$.//>(
2
.
!!!!!!!!
,
<
, ( 6
.
<
, .
<
, $!(
.
<
, , ; .
C
I 6
;
= $&/(
4 5
>
J
;
I :
3
= $&&(
3
4 . >
; ,
# . ,
# $&.(
E , ; .
$ &.( $ &!!'( % .
; , .
; ,
3 $&>(
$&>( $&/(
. 3
, " B
6 $&?(
>
>
6 9 9
&
0
7 7
"
6 6
"
4 4 7
&
&
&
"
"
4
"
#
. ,
# /
: 6
C $< E.(
"C $1 E?( 3
&C $ E>( 3
4C $1 E=(
6C $< E.( 3
7C $8 E.( 3
9C $ E>(
>C $- E9(
*
4 < #
$ 4<# ( &!!! !! #4- ? .'
#4- ?
#4-,
1 $- 1
8
0 (9 B
. =
A &!!' > 6 "
" "
&!!'
" &!!'
"
&!!' 4
D "
3
3 3
3
3 "
* + " " " $ "
" 4 .
$?'K( "
$.;K( &' ;
#4-6 #4-
"
61 )
7$ / 6
3
$ $ 8
.///(
B & .9
$ (
$4 ( - ??
&= ' 4 ,
#4-
4 $4 (
- $- ( #4- -
#4- 4
4 -
4 4
- 4
- L &&
&&
4 - & .?
4 5-
D 4 5- &'
8 4
$?'K( $?&K(
$.'K( $.>K( -
" $.9K( $&.K( $&9K(
$&!K(
#
?>
D
? 1 $9&K(
$?>K( " $?.K( $>&K(
"
'8 ./// @ 4
#4- 4
@ < $@< ( 8 D
$ 8D( #4- $ ( @<
" @< - 4
8D #4-
4 8D !
D
>/
#4-
#4- 8 $.///( ;/
1 - 02D D
?& 1 -
02D
<
% -
-
$ E?=( $ E&=(
- 5#
$ E;(
0 "
$ E.;(
$ E!!(
,$ $ "
L $K( ! = .9 &? &&
D $K( .. ?? >; &? .9
#4- $K( && &! &> .9 &=
4 $ ( $K( 9; .9 .9 >! ??
D / = .9 ' >
,$ $ + -.
0 9; ?' '& =& 9;
L - .9 >' && &9 .?
D &> &? &; .? &'
$ ( ? 9 ; > ?
@ $K( ?> 9& >& ?. ?>
? ? > ? ?
<
02D 5 1 -
./ &> .9 9' >/
1 6 #885 4<# &!!! # 4 1
* # / "
M
# . =.
.&
&' :
99 ==
!/
$ ( ;K
4 - 2
.&
"
> ';
< 1 1 - ?&
$ (
.!
. .=
% # 2
$ E?=( $ E&=(
-
$ E;(
0 "
$ E.;(
$ E!!(
2
$K( &> .' 9! && &=
1 $K( =9 =/ .9 =9 =.
L $K( .> &> &= .? .&
2 $K( =. '' !& .9 99
< $K( 9/ 9= .= &// ==
2
$K(
!> ;= '= ;! !/
K
, $K(
.9 .& &9 &> ./
2
- 4 $K(
&/ . &. ; ;
0 > . > . >
2 < 1
1 - 02D $K(
;/ !9 '> =9 ';
K < 1 1 -
02D
>; '> ?> .= ?&
@ $
(
>; .> ; .. .!
2
$K(
&; 9& .= .. .=
1 6 #885 4<# &!!! # 4 1
* ( "
< 4<#
D 2
> G
&?
&9
*
&
3
- &?
4
- .&
" " -
&&
<
$ (
> >!K
9'
>'K 3
% ( @ ,
-
$ E?=( $ E&=(
-
$ E;(
0 "
$ E.;(
$ E!!(
<
$K(
; >? >. &> &?
<
2 $K(
&& .9 .! &= &9
0 - &? &> &= &= &?
0 - ./ &! .; .. .&
0 " - && && && &/ &&
# == 9> 9/ ?> 9=
"
2
$K(
>9 9? >! >' >!
< $
( $K(
&' .! && &; &!
< $
( $K(
99 ;' ?9 ?' 9'
< $K( .> ;/ ?9 >= >'
1 6 #885 4<# &!!! # 4 1
4
* 0 / " " $
? " .>
8 3 $&?K(
#4-
3 $?.K( "
$>&K( : 9&
?!
% * @ "
$ E?=( $ E&=(
-
$ E;(
0 "
$ E.;(
$ E!!(
8 3 $K( &? .' ?. >& .>
2 $K(
4 9& 9/ / 9> ?!
< ?! 9/ &// ?' 9&
# $K(
: $ ( .9 >= &' .& .9
4 ./ >= .9 ' &;
4 ; ; >! .? &=
0 ./ &? .? >= .?
? / / & .
4 9 / . ? ?
. / / > .
8 ? / & & .
D &> = . . '
1 6 #885 4<# &!!! # 4 1
:
* " $
( &= ?&
$>=K(
D $.?K(
$&;K(
6
* 1 2 $
2
0
4 3
4 !! ?=
,
' 4
;
1 6
8 .
( 4
4 $.//>(
4
$ L2* 08(
$@8A- D0( :
% $&!'!(
$ (
$ (
7 ( 1
6 1-#@@0
"
<@@#1@*@- "
2 $&!!! (
" < :
%
: 3
$ " (
6
4 1-#@@0 L%1-#@@0
:
% 3
( <
4 1 $&!!/( - $&!!!( $&!!!(
: 8 $&!!;(
, 6 &(
.(
4 N , O
3
3
2-D <80 2*D0-80
, :
B :
,
1
$< )D 0 @0 (
9 3 &
/ :
( 1
- $&!!>(
D $.///(
D
$ (
4 P $&!!&(
:
-D:@ * %%D D 3 &
L ** 2@0A B@#
2
< 4 L2
#4- 3
5 3
-
% ,
<D* -* 0
<
&!!?
1 - $1 - (
<
:
,
>
-% #4 *P
- 0
2@08@#%D D
3 :
( <
3 8 $&!!;(
%
$<#@1A8A@8 @( :
*@4@J- 2
"
:
:
( 8 8
:
% 4<#
3 6
&9 3
7
& -
. < &/K
>
$ (
$ (
8
8 $.///(
"
2
:
$ (
-D0 # B 3 & < P 3 &
< 1 -
$B &!!=(
(
4 $*D0-P-*@(
< $&!!=(
3
3
%
1
$0@: B L2( 1
% < $&!!=(
<
"3
3 :
( -
$ Q@( $-D D0( "
$0D04 # ( 2 $2<1 Q@(
4 $&!!!(
? 6 &( " .(
>(
:
$-#@8* (
0 " "
3 9
2 ,
2 $&!!! (
B 4
"
, D
1
"
"
% 06 8 " <
L - Q"
!
! ;
" <#D8 # B*@ "/ .&9 "& 9? "/ />;
<#D8*@L@*1-% "/ ./& "& >& / />=
3 1-#@@0 "/ /?. "/ && / //!
1-#4 "/ >&! "/ => "/ /;>
<@@#1@*@- "/ ;>;I "& == "/ ?.;
1-#L2%@ 8 "/ >&& "/ 9 "/ /&;
< )D 0 @0 "/ =/;I "& ;' "/ .!?
2-D <80 > .==I & '' / ./>
2*D0-80 "& ;.; "& /' / />?
3 L ** 2@0A R# / >''III > >! / /9=
< 4 L2 "/ .9& "/ 9; "/ &.!
-% #4 *P "/ /?= "/ '' / //&
" <#@1A8A@8 @ "& /.9II ". /. "/ >.!
*@4@J- 2 / .'! & > "/ />'
-D0 # B< P "& >&&II ". >= "/ ?&9
< P<@0 P "/ .=9 "/ 9 / /&&
< 1 1 - & .//II . .9 / >;>
$ 4 $5
0@: B L2 / >/=III > .> / >/!
*-P-*@ / ?';II . 9& / &&=
. 2<1 Q@ / /.9 / =; / //9
J 8* 2 / //&II . / / //&
Q@ "/ =!? "& /; "/ >9&
-D D0 "/ =9? "& "/ &'?
0D04 # / .&& / ?? "/ />'
* *D02:@ & 99>II . /= / 9>;
QD B & !.'III . '' / =?;
0S%D . >;9I & ;& / ==>
. "& ?>= "& .;
!!
D E/ 9;
K - '. '>
: .$.>( ?? '.
< H . / //!
< #. / >>&9
* " ?9 =?
1 6D #885 4<# &!!! # 4 1
0 6 I <T/ &/U II <T/ /9U III <T/ /&
6 !
!# , < .
E , ; .
""
: $&!!!(
2
3 &/
B $&!!=(
B )**
B
1 - $1 - ( %
1 - % &!!.
1 -
5 B
4
1
< $&!!=(
% U
3
B
1 $&!!/(
D
"&
1 . " !
) * * $)**(
+ V
0
:
2 2 2 $&!!!( 8 $&!!;( <
$&!!=( $.//>(
" " "
#
?/
D
<
"
2 2 $&!!!( 8 $&!!;(
< $&!!=( 0
"
3
:
,
&/
"4 0
D
3 4
<
"
"
"
"
"6 6 7
W B - 2 $.///( N< 2 4
1 O &&/ $/&( =>."=?>
B $&!!!( ND
O ! " # =/ '!"&/?
- # $.//>( NA # 8
* O
B 1 - $&!!9( N2 * # 1
- O ! " # ?= $&( &"&;
B &!;= N4 1 < 6 -
2 - 1 Q O $ % " # =$.( &&9"
&>.
B 2 $&!!=( N# -
4 1 - O % $ #
& . % 8 < # *
- P "S $.//.( X) * < 2 * X
' L .6 0 & >
- ) 1 $&!!>( N # # O $&!!. < (
% ( ) # 9;6 &"&9
- ) $&!!!( ND 1 * < "
* O ! " # =/$&(
- ) $.///( N 7 ) *
% O : - - 8 @ : <
8 1 4 - : - $.///( N8 1
# - 1 < < O "
D # < 4<#
8 $&!!;( N8 < < @3 D 2
B * < O : 4<#
4 1 * P < $&!!&( N - 0
@ 6 - < O B 6 : <
4 8 - 8 8 $&!!>( N< < "
< 2 6 2 B B O 8
B 2
2 $&!!! ( N2 * * < 1 O !
" # =/ $&( .'"9/
2 $&!!! ( N1 - S 6 ) * *
< 1 @ O A -
2 2 $&!!!( N @ * ) * 6
< O ! " # =/ $&( !9"..!
2 $&!!?( N 4 6 # C - -
O &;!?"&!&? * +,
% 0 # * % $.//9( N< 1
% 2 "B * < 6 @ @ O # #
# 1 1 D $1D ( />@>= 2
A 0
% B $&!'!( N % D O - ! L &/
0 & $1 &!'!( '?"!&
"7
2 1 $&!!'( N* 8 M L @ O
' . # $ *
$&!!'( N# < 2 B B 6 A
1 O ( # " # .& $?( ?9&"?'.
D 1 $.///( O@ % 8
< 4 2 # 0 O # #
1 %! ) ' /% )'0 0 S
< ) $&!!=( N8 1 2 * # 6
B 4 O < 8 D 1 A
1 @ $.//?( N 4 1 8 O 4 % " & " <<
-.9> Y #@ -.9> A B " -
655 5 5 #@.9>5.//?5 5<</?"=" 4
1 B $.///( N @ - 6 < O 12 $ -
* @
1 ) $&!!/( N< - O 3 - 4 ) # ?$>(
&!'"./>
: B $&!!!( N- 1 - % # 4 7 @
2 " * 2 O &/! ?=>"?'9
'
"9 ' #6
2 3 '
% Q #8$&E ( /E
: 3!4" 3!48
!
"
L2* 08 > &' & ?'& "
@8A- D0 ? '. & 9>> "
3
1-#@@0 : / ?>! / ?!/ "
4 1-#@@0 2 $&E /E ( / ?= / ?!! "
<@@#1@*@- : $&E /E ( / .?& / ?.; "
L%1-#@@0 2 L $&E /E ( / &. / >.& "Z
)D 0 @0 @#< $&E ( / = / 9>> "
2-D <0 < / /== / &?' Z
2*D0-0 < Z
3
-D:@ * %D D $&E2 ( / &? / >?> "
L ** 2@0A B@# 0 . '= . />! Z
< 4 L2 $&E ( / ;. / >;> "Z
<D* -* 0 0 / =& & /;> "Z
-% #4 *P 0 & 9/ > /&. "Z
2@08@#%D D : $&E /E ( / 9' / ?!= "
"
<#@1A8A@8 @ : $&E ( / &? / >?! "
*@4@J- 2 0 $ ( / .' & /;/ "
!
-D0 # B< P : $&E /E ( / ?= / 9// "
< P<@0 P : / >' / ?;9 Z
< 1 1 - $&E /E ( / '; / ?&9 Z
! $
0@: B L2 0 & ?& . '>. Z
*D0-P-*@ $&"9( . '? & /9& Z
. 2
2<1 Q@ 0 &= ;? 9 9=> "Z
-#@8* - ?=?.
>;
>;..
&
Z
Q@ 8 $&E /E ( / &! / >!> "Z
-D D0 8 $&E /E ( / /?. / ./& "Z
0D0"4 # 8 " $&E /E ( / >/ / ?=. "Z
3 " 6 #885 4<# &!!! # 4 1
