We will use a field experiment to test how ROSCA-like financial products compare to standard loan contracts in serving the needs of microenterprises. Given that ROSCAs have self-evolved in many parts of the world, it is possible that ROSCA-like cash-flow profiles are better suited to the savings and accumulation needs of microentrepreneurs than standard loan contracts.

We propose to conduct a framed field experiment to learn about microfinance delivery for small enterprises in developing economies. This experiment will be conducted in the Pakistan Punjab in close collaboration between the Universities of Oxford and Birmingham, the Lahore School of Economics (Centre for Research in Economics and Business), and a Pakistani bank. We will work with bank clients to test the value of ROSCA-like financial products.