A note on household approach to credit rationing in agrarian economies
Bibliographic Data
| ID | 7744339 |
|---|---|
| Authors | Debdatta Pal (0000-0003-2881-6004, Moscow State University of Technologies and Management named after K.G. Razumovskiy, corresponding author) |
| Year | 2014 |
| Volume | 24 |
| Issue | 8 |
| Pages | 1070-1079 |
| Publication date | 2014-11-17 |
| Open Access | No |
| Type | ARTICLE |
| Venue | Development in Practice (JOURNAL) |
| Journal identifiers | ISSN: 0961-4524 • E-ISSN: 1364-9213 |
| Publisher | Informa UK Limited (PUBLISHER • GB) |
| DOI | 10.1080/09614524.2014.965130 |
| OpenAlex | W2039522117 |
| Language | EN |
| References cited | 14 |
Using clues from transaction cost economics this note develops an intertemporal agricultural household model to explain the demand-side credit rationing from formal financial institutions in agrarian economies. The model employs ex-ante transaction costs, namely search cost and negotiation cost to explain this phenomenon. The model shows that with market failure an agricultural household's production decision is not separate from its consumption decision. This is when the policy analysis household approach, which includes simultaneous decision making in production and consumption side, becomes essential
Agrarian society · Agricultural productivity · Agriculture · Credit rationing · Economic growth · Economics · Ex-ante · Interest rate · Macroeconomics · Microeconomics · Negotiation · Rationing · Transaction cost · Economic Theory and Policy · Land Rights and Reforms · Microfinance and Financial Inclusion
| Highly cited | No |
|---|