Getting institutions “Right” for whom? Credit constraints and the impact of property rights on the quantity and composition of investment

Property rights reform is typically hypothesized to boost investment through investment demand and credit supply effects. Yet when the credit supply effect is muted, property rights reform would be expected to induce liquidity‐constrained farms to reduce investment in movable capital even as they in...

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Detalles Bibliográficos
Autores principales: Carter, Michael R., Olinto, Pedro
Formato: Journal Article
Lenguaje:Inglés
Publicado: Wiley 2003
Materias:
Acceso en línea:https://hdl.handle.net/10568/157966
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author Carter, Michael R.
Olinto, Pedro
author_browse Carter, Michael R.
Olinto, Pedro
author_facet Carter, Michael R.
Olinto, Pedro
author_sort Carter, Michael R.
collection Repository of Agricultural Research Outputs (CGSpace)
description Property rights reform is typically hypothesized to boost investment through investment demand and credit supply effects. Yet when the credit supply effect is muted, property rights reform would be expected to induce liquidity‐constrained farms to reduce investment in movable capital even as they increase investment in attached capital. This expectation is corroborated by econometric analysis of panel data from Paraguay. While all farmers experience a positive investment demand effect, liquidity‐constrained producers correspondingly reduce their demand for movable capital. Given an estimated pattern of wealth‐biased liquidity constraints, property rights reform will get institutions “right” for only wealthier producers.
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spelling CGSpace1579662025-05-16T16:59:46Z Getting institutions “Right” for whom? Credit constraints and the impact of property rights on the quantity and composition of investment Carter, Michael R. Olinto, Pedro property rights investment credit policies Property rights reform is typically hypothesized to boost investment through investment demand and credit supply effects. Yet when the credit supply effect is muted, property rights reform would be expected to induce liquidity‐constrained farms to reduce investment in movable capital even as they increase investment in attached capital. This expectation is corroborated by econometric analysis of panel data from Paraguay. While all farmers experience a positive investment demand effect, liquidity‐constrained producers correspondingly reduce their demand for movable capital. Given an estimated pattern of wealth‐biased liquidity constraints, property rights reform will get institutions “right” for only wealthier producers. 2003-02 2024-10-24T12:52:44Z 2024-10-24T12:52:44Z Journal Article https://hdl.handle.net/10568/157966 en Limited Access Wiley Carter, Michael R.; Olinto, Pedro. 2003. Getting institutions “Right” for whom? Credit constraints and the impact of property rights on the quantity and composition of investment. American Journal of Agricultural Economics 85(1): 173-186. https://doi.org/10.1111/1467-8276.00111
spellingShingle property rights
investment
credit policies
Carter, Michael R.
Olinto, Pedro
Getting institutions “Right” for whom? Credit constraints and the impact of property rights on the quantity and composition of investment
title Getting institutions “Right” for whom? Credit constraints and the impact of property rights on the quantity and composition of investment
title_full Getting institutions “Right” for whom? Credit constraints and the impact of property rights on the quantity and composition of investment
title_fullStr Getting institutions “Right” for whom? Credit constraints and the impact of property rights on the quantity and composition of investment
title_full_unstemmed Getting institutions “Right” for whom? Credit constraints and the impact of property rights on the quantity and composition of investment
title_short Getting institutions “Right” for whom? Credit constraints and the impact of property rights on the quantity and composition of investment
title_sort getting institutions right for whom credit constraints and the impact of property rights on the quantity and composition of investment
topic property rights
investment
credit policies
url https://hdl.handle.net/10568/157966
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