Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/241869 
Authors: 
Year of Publication: 
2021
Series/Report no.: 
ILE Working Paper Series No. 52
Publisher: 
University of Hamburg, Institute of Law and Economics (ILE), Hamburg
Abstract: 
Rotating Savings and Credit Associations (RoSCAs) is a widely spread informal financial institution in developing countries. This paper examines how access to formal banking (or lack thereof), impatience and self-control are correlated with individuals' decisions to join RoSCAs. The paper employs an incentivized experiment to elicit impatience and a questionnaire to measure bank access, self-control and RoSCA participation among university employees in Cairo (Egypt). Findings indicate that access to formal banking significantly decreases the likelihood of RoSCA participation. In addition, behavioural attitudes partially (self-control but not impatience) correlates with the RoSCA participation decision. Conditional on RoSCA participation, behavioural attitudes towards self-control and impatience are significant correlates of whether an individual is a saver or a borrow in the informal institution.
Subjects: 
RoSCAs
RoSCA rank
informal banking
impatience
self-control
JEL: 
C91
D14
O17
Document Type: 
Working Paper

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