?url_ver=Z39.88-2004&rft_val_fmt=info%3Aofi%2Ffmt%3Akev%3Amtx%3Adc&rft.title=Does+Subsidising+the+Cost+of+Capital+Really+Help+the+Poorest%3F+An+Analysis+of+Saving+Opportunities+in%0D%0AGroup-Lending&rft.creator=Aniket%2C+K&rft.description=Saving+opportunities+can+only+be+offered+in+group-lending+by+restricting+the+number+of+borrowers+in+a+group%2C+thus+creating+intra-group+competition+for+loans.+Our+model+predicts+that+this+would+lead+to+negative+assortative+matching+along+wealth+lines+(the+wealthy+would+group+with+poorer+individuals).+We+find+that+in+a+two+member+group%2C+the+borrower's+wealth+threshold+for+joining+the+group+would+be+greater+than+the+non-borrower's+wealth+threshold.+The+non-borrower's+wealth+threshold+increases+and+the+borrower's+wealth+threshold+decreases+with+the+cost+of+capital%2C+thus+widening+the+gap+between+the+two+thresholds.+We+thus+highlight+the+two+countervailing+effects+of+subsidising+the+cost+of+capital%2C+i.e.%2C+the+trade-off+between+raising+the+wealth+threshold+for+joining+the+group+as+a+non-borrower+and+decreasing+the+expected+time+it+would+take+to+loosen+the+wealth+deprived+non-borrower's+credit+constraints.&rft.subject=Group-Lending%2C+Microfinance%2C+Savings%2C+Outreach%2C+Wealth&rft.publisher=School+of+Economics%2C+the+University+of+Edinburgh&rft.date=2007-02&rft.type=Working+%2F+discussion+paper&rft.language=eng&rft.source=++++(ESE+Discussion+Papers++140).+School+of+Economics%2C+the+University+of+Edinburgh%3A+Edinburgh%2C+UK.+(2007)+++++&rft.format=text&rft.identifier=https%3A%2F%2Fdiscovery.ucl.ac.uk%2Fid%2Feprint%2F10052420%2F1%2Fid140_esedps.pdf&rft.identifier=https%3A%2F%2Fdiscovery.ucl.ac.uk%2Fid%2Feprint%2F10052420%2F&rft.rights=open