Rotating Savings Clubs and the Control of Dynamic Inconsistency

Language: English

Published by LAP LAMBERT Academic Publishing Sep 2010, 2010

3838328086 / 9783838328089

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This item is printed on demand - Print on Demand Titel. Neuware -The purpose of this study is to examine the economic function that rotating savings and credit associations (ROSCAs) serve in the lives of the poor. The proposition is that the primary function of ROSCAs is to assist their members to save money in the face of wavering self-discipline. Evidence to this effect is derived from data collected in two rural areas of South Africa. The issue of imperfect self-discipline is related to the concept of dynamic inconsistency, by which is meant the tendency to deviate from one's plans or intentions. In the context of ROSCAs, dynamic inconsistency means failing to save as much money as one needs or intends to save. It is proposed that people are susceptible to this type of dynamic inconsistency due to at least three factors: cognitive difficulty in identifying the optimal savings plan in the first place; vulnerability to impulse spending; and a high degree of impatience. ROSCAs serve as a potent antidote to dynamic inconsistency, because they establish a robust commitment to regimented behavior. People join ROSCAs precisely because ROSCAs promise to enforce a consistency in behavior that one may fail to achieve on one's own.VDM Verlag, Dudweiler Landstraße 99, 66123 Saarbrücken 160 pp. Englisch.

Seller Inventory # 9783838328089

Title
Rotating Savings Clubs and the Control of Dynamic Inconsistency
Author
Michael Aliber
Publisher
LAP LAMBERT Academic Publishing Sep 2010
Publication year
2010
Condition
Neu
Binding
Taschenbuch
Language
English
ISBN 10
3838328086
ISBN 13
9783838328089
Item weight
256 grams
Dimensions
220x150x11 mm

buchversandmimpf2000

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