A TRANSACTION COST MODEL OF FORMAL AND INFORMAL MARKETS FOR RURAL CREDIT

A mOdel is developed that describes formal and in-Formal rural credit markets in terms of transaction costs of lenders. Stimulating agricultural investment with subsidized , formal loans is shown to incur signi.ficant efficiency costs by drawing credit away from high productivity investments in - the unsubsidized sector.


Issue Date:
1986-07
Publication Type:
Conference Paper/ Presentation
DOI and Other Identifiers:
Record Identifier:
https://ageconsearch.umn.edu/record/278055
Language:
English
Total Pages:
14




 Record created 2018-10-11, last modified 2020-10-28

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