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2 articles for “Roscas”
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Measuring Risk Attitudes and Time Preference in Rotating Saving Credit Associations
Abstract: A rotating saving credit association, popularly known as ‘Rosca’, is a financial mechanism functioning over a fixed period of time. It involves formation of a group of people contributing fixed amounts of money to a pre-determined pool every period. Each participant either through draw of lots or bidding is entitled to the rosca pot in a given round. The rosca cycle ends when each person in the group has received …
Published in Research & Reviews : Journal of Statistics · Vol. 6, Issue 1, 2017 · pp. 18–23 Read article
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A Model of Bidding in Rotating Saving Credit Associations
Abstract: The paper analyzes bidding behavior in discount bidding Roscas under the assumption of risk neutrality. Roscas are group based revolving financial schemes. In discount bidding Roscas, individuals bid for a lumpsum. We find that bids submitted by members in equilibrium are increasing in the returns or opportunities for investment. Further, members submit lower bids when credit is available outside Rosca at expensive rates. A bidding Rosca is efficient as an …
Published in Journal of Production Research & Management · Vol. 7, Issue 1, 2017 · pp. 11–15 Read article