Life and Death of Roscas : If Power Corrupts, Does Powerlessness Make One Blameless ?

Abstract

We have very few ideas as to what factors can influence the duration of roscas and reduce their failure risk. In this research, we bring new light on these empirical questions using an original data set containing information on living and dead roscas from Cotonou, Benin. We notice that the groups run by a president alone are more likely to fall apart. We also present evidence that individuals attracted to this type of groups have a lower social capital and therefore might be more likely to default.ROSCA ; Survival Analysis ; Governance structure ; Benin