Article titled ‘Microfinance Group Processes and Crises: Responses to Economic and Psychological Threat’, is co-authored with IIMB Professor Rajalaxmi Kamath
05 December, 2018, Bengaluru: An article by Anjana Dube, Fellow of IIM Bangalore, titled: ‘Microfinance Group Processes and Crises: Responses to Economic and Psychological Threats’, co-authored with Professor Rajalaxmi Kamath, faculty from the Public Policy area at IIMB, has been published online in The Journal of Development Studies. The article is a culmination of her dissertation thesis.
Anjana is currently the Deputy Director General (DDG) in the Department of Financial Services, Ministry of Finance, Government of India.
Congratulating Anjana on her achievement, Professor Rejie George Pallathitta, Chair, Fellow Programme in Management at IIMB, said: “Anjana’s paper, with in-depth analysis on the subject, can serve as a framework for further research on the topic.”
The article examines Microfinance Institution (MFI) group processes simulating potential default by members, often the tipping point of crises. Using structural equation methods to develop measurement models and experimental methodology to test causal effects of economic and psychological threats, the risks perceived by individual borrowers are captured effectively. These threats are defined in terms of a given financial loss and reputation loss. The results show that members make the subtle distinction between different types of peer pressure and joint liability. It is also shown that psychological threats perceived by borrowers are key to understanding MFI group processes, especially as triggers to a repayment crisis.
Article titled ‘Microfinance Group Processes and Crises: Responses to Economic and Psychological Threat’, is co-authored with IIMB Professor Rajalaxmi Kamath
05 December, 2018, Bengaluru: An article by Anjana Dube, Fellow of IIM Bangalore, titled: ‘Microfinance Group Processes and Crises: Responses to Economic and Psychological Threats’, co-authored with Professor Rajalaxmi Kamath, faculty from the Public Policy area at IIMB, has been published online in The Journal of Development Studies. The article is a culmination of her dissertation thesis.
Anjana is currently the Deputy Director General (DDG) in the Department of Financial Services, Ministry of Finance, Government of India.
Congratulating Anjana on her achievement, Professor Rejie George Pallathitta, Chair, Fellow Programme in Management at IIMB, said: “Anjana’s paper, with in-depth analysis on the subject, can serve as a framework for further research on the topic.”
The article examines Microfinance Institution (MFI) group processes simulating potential default by members, often the tipping point of crises. Using structural equation methods to develop measurement models and experimental methodology to test causal effects of economic and psychological threats, the risks perceived by individual borrowers are captured effectively. These threats are defined in terms of a given financial loss and reputation loss. The results show that members make the subtle distinction between different types of peer pressure and joint liability. It is also shown that psychological threats perceived by borrowers are key to understanding MFI group processes, especially as triggers to a repayment crisis.