A censored logit-based analysis of the inclusive resilience of solidarity finance in Europe

Abstract

In this article, we study the factors explaining the inclusive resilience of solidarity finance, namely the ability of this alternative finance to include individuals, projects and areas excluded from classic finance. From european data about the solidarity finance institutions (SFI), we construct an indicator that measures the inclusive resilience of SFIs via a scoring method. Contrary to Kouakou (2017), this indicator does not depend on the lifetime of SFIs. So, we remove from the inclusive indicator the temporal factor so that it now holds in a bounded above interval, making OLS econometric method no longer applicable. Finally, we show, through a censored logit estimation, that factors as territorial anchorage of SFIs, participatory governance within SFIs, governmental subsidies and an indicator of financial capacity, reinforce the inclusive resilience of SFIs.

Keywords: finance, resilience, solidarity finance, scoring, censored logit.

JEL Classification: C24, C25, C87, G29