Optimal group size in microlending

Published in Annals of Finance, 2021

We show that the original choice of Muhammad Yunus, of a group size of five people, is, under the right, and, we believe, reasonable hypotheses, either close to optimal, or even at times exactly optimal, i.e., the optimal group size is indeed five people.

Recommended citation: Protter, P., Quintos, A. Optimal group size in microlending. Ann Finance (2021).