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Risk, Wealth And Sectoral Choice In Rural Credit Markets

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  • Guirkinger, Catherine
  • Boucher, Stephen R.
Abstract
We develop a model of sorting and matching between borrowers and lenders across formal and informal credit markets in a developing country context. We highlight the role of risk both on credit access and sectoral choice. We examine how activity and sectoral choice vary across agents with heterogeneous wealth endowments.

Suggested Citation

  • Guirkinger, Catherine & Boucher, Stephen R., 2004. "Risk, Wealth And Sectoral Choice In Rural Credit Markets," 2004 Annual meeting, August 1-4, Denver, CO 20077, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    • Handle: RePEc:ags:aaea04:20077
    DOI: 10.22004/ag.econ.20077
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    References listed on IDEAS

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    8. Conning, Jonathan, 1999. "Outreach, sustainability and leverage in monitored and peer-monitored lending," Journal of Development Economics, Elsevier, vol. 60(1), pages 51-77, October.
    9. Christian Gollier, 2004. "The Economics of Risk and Time," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262572249, April.
    10. Bell, Clive & Srinivasan, T N & Udry, Christopher, 1997. "Rationing, Spillover, and Interlinking in Credit Markets: The Case of Rural Punjab," Oxford Economic Papers, Oxford University Press, vol. 49(4), pages 557-585, October.
    11. Carter, Michael R., 1988. "Equilibrium credit rationing of small farm agriculture," Journal of Development Economics, Elsevier, vol. 28(1), pages 83-103, February.
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