Public Good Provision in Indian Rural Areas
Self-help groups (SHGs) are the most
common form of microfinance in India. The authors provide
evidence that SHGs, composed of women only, undertake
collective actions for the provision of public goods within
village communities. Using a theoretical model, this paper
shows that an elected official, whose aim is to maximize
re-election chances, exerts higher effort in providing
public goods when private citizens undertake collective