Do following projects, related to understanding microfinance loans made by Kiva, https://www.kiva.org/ . In addition to the main page, you should look at the About page and links to How Kiva works (the long version, due diligence and monitoring) and Learn more about microfinance. You should also review Ch. 8 (there is little written on the web that is accessible makes the connection of Kiva to asymmetric information). Page format: 1.5 line spacing, 12 times font, front-to-back, 1 inch margins. Two-page essay: What asymmetric information problems (e.g. adverse selection, moral hazard, and principal agent problems) does Kiva overcome in providing microfinance to the poor where standard banks fail? Why? Your essay must not exceed 500 words (not including references); include the word count. Marks will be deducted for poor writing. After making a few key points you should try to concentrate on a particular asymmetric information problem related to one of adverse selection or moral hazard.
