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Prabal Roy Chowdhury
Prabal Roy Chowdhury is Professor of Economics at the Economics and Planning Unit at the Indian Statistical Institute (ISI) (New Delhi). Prior to joining ISI, he taught at the Indian Institute of Management, Kolkata, as well as at Jawaharlal Nehru University (JNU). His research interests span many different areas of economics – in the field of development economics, he has published widely in the area of microfinance, with one of his papers receiving the “Best Paper Award” from the Journal of Development Economics in 1987. He has also worked on land acquisition, corruption, foreign aid, affirmative action, and land reform. He has a Bachelors in Economics from Presidency College, Kolkata, a Masters in Economics from JNU, and a Ph.D. from ISI, New Delhi.
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A microfinance model to enhance borrowers’ lifetime utility
Research has shown that providing credit along with services such as savings instruments, can increase the utility that borrowers obtain from credit. Presenting a theoretical model where microfinance institutions offer a ‘locked-in’ savings service and credit, this article shows that the optimal contract is one that enables a borrower to save up the lumpsum amount required to adopt a more efficient technology.
