Economic Rockstar

Connecting Brilliant Minds in Economics and Finance

059: Shawn Humphrey on La Ceiba Microfinance, Tribal Teaching and Creating a Culture of Commitment in the Classroom

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059: Shawn Humphrey on La Ceiba Microfinance, Tribal Teaching and Creating a Culture of Commitment in the Classroom

Shawn Humphrey is currently an Associate Professor of Economics at the University of Mary Washington.shawn humphrey

Shawn is the founder of La Ceiba Microfinance,the Two Dollar Challenge, the Month of Microfinance, and the Poverty Action Conference. 

He is also on the Board of Directors of Students Helping Honduras, a former Clinton Global Initiative University mentor, an Opportunity Collaboration alum and a 2014 Feast on Good Speaker.

Shawn is from North Bend, OH, earned his BA in Economics from Earlham College (Richmond, IN), his MA in Economics at Virginia Commonwealth University (Richmond, VA), and after having read Douglass C. North’s Institutions, Institutional Change, and Economic Performance headed to Washington University in St. Louis where he earned his PhD in Economics.

Shawn describes himself as a Tribal Teacher, a Diligent Do-Gooder and a Global Grassroots Mobilizer.

I grew up poor in Ohio. I was bullied from the time I was young, all the way through 8th grade. Both these things are part of my core and they motivate me in everything that I do – Shawn Humphrey

Economics:

In this interview, Shawn mentions: economic development, microfinance, consumption smoothing, poverty and globalisation.

Economists:

In this interview, Shawn mentions: Christine Exley, Helena Nordberg-Hodge, Eugene Power, Robert Solow, Douglass North, Armen Alchian, Harold Demsetz and Gary Miller.

In this episode you will learn:

  • about the social entrepreneurial journey that Shawn found himself pursuing.
  • about Shawn’s Tribal Teaching pedagogy and if this is the future of education.
  • why Shawn wanted to help the poor in Honduras and to encourage people to experience poverty.
  • about Shawn’s family experiencing poverty in the 1970s and how their standing in the community led him to believe that there was a better way to treat and help people out of poverty.
  • about how La Ceiba are helping the poor in Honduras.
  • about the importance of building relationships with individuals that seek assistance from La Ceiba.
  • the problems with microfinance due to group lending and peer-pressure.
  • about the Two Dollar Challenge and you can get involved.
  • why supporting local leaders is the key to ending poverty.
  • about Shawn’s 7 year journey to finding a common ground in humanity.
  • why Shawn’s initial desire to feel significant while helping the poor is now a constant battle.
  • about Tribal Teaching and the pedagogy Shawn has  designed and embraced to make a better learning environment and process.
  • about the culture of commitment that Shawn has introduced into his classroom.

Shawn Humphrey on La Ceiba Microfinance:

“My students and I, we run our own microfinance institution in Honduras called La Ceiba where we take a very distinct approach to microfinance which is different to anything else that is out there.” – Shawn Humphrey

You can make a global impact on not a lot of money if you’re creative enough to embrace your constraints and say ‘hey, let’s find a way around this one!’ and do it creatively. – Shawn Humphrey

“Group lending is simply peer-pressure. It’s a public process by which a small set of individuals can apply pressure to one individual in the group who is unable and/or unwilling at that moment to pay off her loan.”

“90% of our clients did not use their loans for entrepreneurial activities. Most of them use it for consumption smoothing.” – Shawn Humphrey

We get more stories out of coffee and donuts than we do out of group meetings – Shawn Humphrey

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My role is actually on the side-lines as a side-kick, not as a hero in this whole thing – Shawn Humphrey

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I’m fighting an entire culture that has conditioned us to believe in certain things – Shawn Humphrey

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When I started this work, I was flailing human being. I felt hollow inside and for some reason I felt that I could fill that hole by trying to end someone else’s poverty. – Shawn Humphrey

Our hardest work is inside of us – Shawn Humphrey

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Where to Find Shawn Humphrey:

Organisations founded by Shawn Humphrey:

Recommended Readings:

Documentaries:

Books:

  • The Hero with a Thousand Faces by Joseph Campbell
  • Institutions, Institutional Change, and Economic Performance by Douglass C. North
  • Managerial Dilemma’s by Gary Miller
  • The War of Art by Stephen Pressfield

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054: Christine Exley on the Economics of Volunteering, Market Failure in the Homeless Dog Market and Wagaroo

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054: Christine Exley on the Economics of Volunteering, Market Failure in the Homeless Dog Market and Wagaroo

Christine Exley is Professor of Business Administration at Harvard Business School. Christine is also Co-founder and Christine ExleyChief of Research at Wagaroo – an organisation dedicated to re-house homeless dogs to responsible and loving families.

Wagaroo was founded to bring a simple principle to life: When it comes to getting a pet, it’s time to make it easier for people to do the right thing! No puppy mills. No backyard breeders. Just owners, rescues, responsible breeders, and shelters working together to find great homes for dogs who need them. Find out more at wagaroo.com.

This episode is dedicated to Pepper, Christine’s family pet dog who recently passed away. Pepper is the Pit Bull that Christine mentions in this episode whom she rescued from a dog shelter.

Economics:

In this interview, Christine mentions: gender differences, labor markets, incentives, market failure, search costs, information asymmetry, supply, demand, thick and thin markets, labor markets and wage elasticities.

Economists:

In this interview, Christine mentions: Al Roth, Dan Ariely, Shawn Humphrey, Doug Bernstein, Charlie Springer and Stephen Terry.

In this episode you will learn:

  • the use of assumptions in economic models for testing.
  • how to encourage volunteering and whether monetary incentives work.
  • how a trip to Honduras changed Christine’s academic path from mathematics to economics.
  • how a story about an individuals’ plight can be a powerful message to have people react in a charitable manner, while the plight of millions with no media coverage of a personal story of suffering could become less powerful.
  • about Wagaroo and why Christine set it up to help save dogs from puppy mills.
  • what are thick and thin markets.
  • how to spot an irresponsible dog breeder.
  • about the family2family programme run by Wagaroo.
  • how localised knowledge is key to separate the responsible dog breeder from the irresponsible breeder.
  • why more must be done to regulate and protect animals.
  • how Christine saved a pups life from a dog shelter when she was 17 and became her family pet.
  • why people put in less effort once they hit a target.
  • about the motivating benefits of rewarding volunteers with gift cards rather than a cash equivalent.
  • how virtual rewards, like stickers and badges, can incentivise people to rmeet targets.
  • how people’s perceptions of Pit Bull are an Econ 101 thing!

Quotes by Christine in Episode 54 of the Economic Rockstar Podcast:

“Your population of volunteers really matters” – Christine Exley

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On Al Roth – “He’s someone who always encourages you to dream bigger” – Christine Exley

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On the successful family2family programme run by Wagaroo: “As an economist I’m very pleased with how clean and, in a sense, compatible that is” – Christine Exley

Market Failure in the Market for Homeless Pets

“I think there’s every market failure in the book in the market for homeless pets” – Christine Exley

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Two of the biggest ones arise from search costs. It’s really hard to find the dog you’re looking for. There are thousands of organisations globally that have dogs. There are thousands, if not millions, of families each year that need to re-home dogs.

The heterogeneity in types of dogs – different sizes, ages, breeds and personalities. The inventory is not always up-to-date. It’s hard to coordinate among multiple actors. It’s a disaster. Trying to find out all of that information is challenging.

Information asymmetry is another market failure. Often people on the other side have more information about the dog than you do. Sometimes no one has information on the dog. Maybe the dog was found on the street and we have no idea what’s this dogs history is or how this dog would interact in different environments.

There are many fundamental challenges that really make it a tricky market.

There’s actually about 2 million dogs and cats every year that are killed because they don’t find homes. So there’s certainly a surplus so to speak of dogs and cats.

Up to 23 million people are interested in acquiring a pet for their family in any given year. The vast majority are open to multiple sources – adoption, buying from a breeder.

It’s very easy for bad actors to imitate good actors – Christine Exley

Personal Habits:

  • Getting up at 5:45 am and Running

Takeaway:

Internet Resource:

Contact: spot@wagaroo.com

Where to Find Christine:

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