Table 7.

Implicit interest rates.

Groups partitioned by:	chit value						contribution
Chit value/contribution:	Low		Medium		High		Low		Medium		High
Duration:	Short	Long	Short	Long	Short	Long	Short	Long	Short	Long	Short	Long
	(1)	(2)	(3)	(4)	(5)	(6)	(7)	(8)	(9)	(10)	(11)	(12)
A. Interest rate computed using first and last month
1993	16.48	14.15	18.92	18.17	24.18	20.88	15.76	14.20	18.33	18.15	20.60	20.88
	(0.36)	(0.12)	(0.32)	(0.63)	(1.02)	(0.56)	(0.38)	(0.12)	(0.28)	(0.64)	(0.69)	(0.56)
1994	17.00	9.95	14.52	8.77	16.58	8.38	16.09	9.95	15.30	8.77	15.88	8.38
	(0.42)	(0.04)	(0.15)	(0.16)	(0.37)	(0.13)	(0.36)	(0.04)	(0.24)	(0.16)	(0.25)	(0.13)
B. Interest rate computed using 0.20*duration and last month
1993	15.53	14.01	17.71	16.40	20.50	17.94	15.04	14.11	17.04	16.18	18.81	17.94
	(0.44)	(0.12)	(0.32)	(0.56)	(0.97)	(0.49)	(0.72)	(0.12)	(0.32)	(0.57)	(0.53)	(0.49)
1994	16.88	10.80	16.39	9.98	18.98	10.00	17.36	10.80	16.28	9.98	17.97	10.00
	(0.55)	(0.11)	(0.20)	(0.18)	(0.39)	(0.15)	(0.58)	(0.11)	(0.29)	−(0.18)	(0.32)	(0.15)

Note: Short duration groups run for less than 40 months, Long duration groups run for at least 40 month Chit value: Low if chit value = 10,000; Medium if chit value 10,000–50,000; High if chit value ≥ 50,000. Contribution: Low if contribution < 500/month; Medium if contribution 500–1,000; High if contribution ≥ 1,000.Mean interest rate (in percentage) with standard errors in parentheses.Interest rates are computed at the group level.