Household welfare effects of ROSCAs

Pushkar Maitra, Ray Miller, Ashish Sedai

Research output: Contribution to journalArticleResearchpeer-review


We examine the effects of Rotating Savings and Credit Associations (ROSCAs) on household welfare in India. The identification strategy is based on household fixed effects and instrumental variables (using the geographic leave-one-out instrument). We find that ROSCA membership increases household assets, consumption, energy efficiency and school expenditure, but only in rural areas. Welfare effects are stronger for poorer households and for those living in communities with stronger social ties. We argue that the persistence and success of ROSCAs depends on social ties, which are often stronger in rural communities.

Original languageEnglish
Article number106287
Number of pages9
JournalWorld Development
Publication statusPublished - Sept 2023


  • C26
  • C33
  • Community bonding
  • Household welfare
  • O12

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