Insights on Immigration and Development
Working Papers
Working paper # 24

Rosca Participation in Benin: a Commitment Issue

By Olivier Dagnelie and Philippe LeMay-Boucher
(December 2009)

In the light of first-hand data from a Beninese urban household survey in Cotonou, we investigate several motives aiming to explain participation in Rotating Savings and Credit ASsociations. We provide anecdotal pieces of evidence, descriptive statistics, FIML regressions and matching estimates which tend to indicate that most individuals use their participation in a rosca as a device to commit themselves to save money and to deal with self-control problems.

JEL-Classification: G2, O16, O17

Key-words: ROSCA, self-control, commitment device, Benin


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