IDEAS home Printed from https://ideas.repec.org/a/ibf/beaccr/v1y2009i1p1-14.html
   My bibliography  Save this article

Creating A New Type Of Student Managed Fund Using Peer-To-Peer Loans

Author

Listed:
  • Lynda S. Livingston
  • Thomas Glassman

Abstract

Finance students can experience real-world challenges and enhance their learning by running an investment fund. However, most of the student-managed funds that currently exist are relatively large, equity-focused portfolios; few funds concentrate on debt, since fixed-income investing usually requires larger investments and higher expenses. In this paper, we present a new type of fixed-income fund: a peer-to-peer lending portfolio, run through the Prosper Marketplace electronic platform. Such portfolios can be hundreds of times smaller than even the smallest traditional student-managed funds. Using Prosper, business programs of almost any size can offer students the educational experience of running an investment fund.

Suggested Citation

  • Lynda S. Livingston & Thomas Glassman, 2009. "Creating A New Type Of Student Managed Fund Using Peer-To-Peer Loans," Business Education and Accreditation, The Institute for Business and Finance Research, vol. 1(1), pages 1-14.
    • Handle: RePEc:ibf:beaccr:v:1:y:2009:i:1:p:1-14
    as

    Download full text from publisher

    File URL: http://www.theibfr2.com/RePEc/ibf/beaccr/bea-v1n1-2009/BEA-V1N1-2009-1.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Christopher Udry, 1994. "Risk and Insurance in a Rural Credit Market: An Empirical Investigation in Northern Nigeria," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 61(3), pages 495-526.
    2. Eliana La Ferrara, 2003. "Kin Groups and Reciprocity: A Model of Credit Transactions in Ghana," American Economic Review, American Economic Association, vol. 93(5), pages 1730-1751, December.
    3. Fenn, George W., 2000. "Speed of issuance and the adequacy of disclosure in the 144A high-yield debt market," Journal of Financial Economics, Elsevier, vol. 56(3), pages 383-405, June.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. La Ferrara, Eliana & Corno, Lucia & Voena, Alessandra, 2020. "Female Genital Cutting and the Slave Trade," CEPR Discussion Papers 15577, C.E.P.R. Discussion Papers.
    2. Bandiera, Oriana & Gulesci, Selim & Rasul, Imran & Burgess, Robin, 2009. "Community networks and poverty reduction programmes: evidence from Bangladesh," LSE Research Online Documents on Economics 58054, London School of Economics and Political Science, LSE Library.
    3. Wang, Ruixin, 2016. "Who Should I Share Risk with? Gifts can tell : Theory and Evidence from Rural China," Other publications TiSEM 95c6dbed-3f49-4d5a-987e-2, Tilburg University, School of Economics and Management.
    4. Crudeli, Luca & Mancinelli, Susanna & Mazzanti, Massimiliano & Pitoro, Raul, 2022. "Beyond individualistic behaviour: Social norms and innovation adoption in rural Mozambique," World Development, Elsevier, vol. 157(C).
    5. Angelucci, Manuela & De Giorgi, Giacomo & Rangel, Marcos A. & Rasul, Imran, 2010. "Family networks and school enrolment: Evidence from a randomized social experiment," Journal of Public Economics, Elsevier, vol. 94(3-4), pages 197-221, April.
    6. Gulesci,Selim, 2020. "Poverty Alleviation and Interhousehold Transfers : Evidence from BRAC's Graduation Program in Bangladesh," Policy Research Working Paper Series 9467, The World Bank.
    7. Wang, Ruixin, 2015. "Essays on development economics and public economics," Other publications TiSEM e1779514-5b71-4726-925b-2, Tilburg University, School of Economics and Management.
    8. Madestam, Andreas, 2014. "Informal finance: A theory of moneylenders," Journal of Development Economics, Elsevier, vol. 107(C), pages 157-174.
    9. Angelucci Manuela & De Giorgi Giacomo & Rangel Marcos & Rasul Imran, 2009. "Village Economies and the Structure of Extended Family Networks," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 9(1), pages 1-46, October.
    10. Freedman, Seth & Jin, Ginger Zhe, 2017. "The information value of online social networks: Lessons from peer-to-peer lending," International Journal of Industrial Organization, Elsevier, vol. 51(C), pages 185-222.
    11. Wang, Ruixin, 2016. "Who Should I Share Risk with? Gifts can tell : Theory and Evidence from Rural China," Discussion Paper 2016-003, Tilburg University, Center for Economic Research.
    12. Manuela Angelucci & Giacomo De Giorgi & Imran Rasul, 2018. "Consumption and Investment in Resource Pooling Family Networks," Economic Journal, Royal Economic Society, vol. 128(615), pages 2613-2651, November.
    13. Takasaki, Yoshito, 2017. "Post-disaster Informal Risk Sharing Against Illness," World Development, Elsevier, vol. 94(C), pages 64-74.
    14. Lucia Dalla Pellegrina, 2007. "Microfinance and Investment: a Comparison with Bank and Informal Lending," Working Papers 20070401, Università degli Studi di Milano-Bicocca, Dipartimento di Statistica, revised Apr 2007.
    15. Di Falco, Salvatore & Bulte, Erwin, 2013. "The Impact of Kinship Networks on the Adoption of Risk-Mitigating Strategies in Ethiopia," World Development, Elsevier, vol. 43(C), pages 100-110.
    16. Yamamura, Eiji, 2008. "The role of social capital in homogeneous society: Review of recent researches in Japan," MPRA Paper 11385, University Library of Munich, Germany.
    17. Janvier D. Nkurunziza, 2005. "Reputation and Credit without Collateral in Africa`s Formal Banking," Economics Series Working Papers WPS/2005-02, University of Oxford, Department of Economics.
    18. Marcos Vera-Hernández & Aida Galiano Martínez, 2008. "Health shocks, household consumption, and child nutrition," Working Papers. Serie EC 2008-14, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).
    19. Osei-Tutu, Francis & Weill, Laurent, 2023. "Individualism reduces borrower discouragement," Journal of Economic Behavior & Organization, Elsevier, vol. 211(C), pages 370-385.
    20. Mahmud, Mahreen & Riley, Emma, 2021. "Household response to an extreme shock: Evidence on the immediate impact of the Covid-19 lockdown on economic outcomes and well-being in rural Uganda," World Development, Elsevier, vol. 140(C).

    More about this item

    Keywords

    student-managed funds; peer-to-peer lending;

    JEL classification:

    • A2 - General Economics and Teaching - - Economic Education and Teaching of Economics

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ibf:beaccr:v:1:y:2009:i:1:p:1-14. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Mercedes Jalbert (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.