The Behavioral and Social Implications of Sequential GroupLending: A Multi-agent comparative Approach between ROMCA, Debt Financing and ROSCA
The Behavioral and Social Implications of Sequential GroupLending: A Multi-agent comparative Approach between ROMCA, Debt Financing and ROSCA
Author(s): Adila El Fakir, Mohamed TkiouatSubject(s): Business Economy / Management, Micro-Economics, Sociology of Culture, Fiscal Politics / Budgeting
Published by: Reprograph
Keywords: Conditional collaborative reinvestment Musharakah; charity; altruism; employment; social value; moral hazard;
Summary/Abstract: In this research we study complexity and how it affects social value creation in a small microeconomic environment. We compare a new model of musharakah called ROMCA with debt financing and ROSCA as three sequential group lending systems using Net logo as multi-agent environment. We found evidence that the new model of musharakah can dominate debt financing in terms of employment creation, consumption, wealth creation even under risks of adverse random shocks. We also found evidence that the new model of musharakah can be better for tax authorities in terms of quicker tax recovery.
Journal: Journal of Applied Economic Sciences (JAES)
- Issue Year: XI/2016
- Issue No: 40
- Page Range: 294-296
- Page Count: 3
- Language: English