Abstract
Understanding the influence of group dynamics (such as group homogeneity and the domino effect) on loan repayment is key to strengthening microfinance institutions in developing countries that employ the group lending methodology. Empirically, these conceptual variables have no perfect proxies and are suited for latent variable models. Mean and Covariance Structure Models (MECOSA) are a useful methodology for the incorporation of latent variables with metric, censored metric, dichotomous and ordinal indicators. Data from 140 groups from a group lending program in Burkina Faso were used to demonstrate the application and interpretation of MECOSA.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
