Discount rates and credit markets: theory and evidence from rural India

Three models of credit markets - (1) the permanent income model, (2) upward sloping credit supply to individual borrowers, and (3) constrained credit due to imperfect enforcement - are tested using credit market data and an experimental study of individuals' discount rates in south India. The perman...

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Autor principal: Pender, John L.
Formato: Journal Article
Lenguaje:Inglés
Publicado: Elsevier 1996
Materias:
Acceso en línea:https://hdl.handle.net/10568/171913
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author Pender, John L.
author_browse Pender, John L.
author_facet Pender, John L.
author_sort Pender, John L.
collection Repository of Agricultural Research Outputs (CGSpace)
description Three models of credit markets - (1) the permanent income model, (2) upward sloping credit supply to individual borrowers, and (3) constrained credit due to imperfect enforcement - are tested using credit market data and an experimental study of individuals' discount rates in south India. The permanent income model is rejected by both the discount rate and the credit market data. The discount rate data are consistent with either of the other two models, while the credit market data are consistent with a combination of these two models. Other explanations are found to be insufficient to explain the results of this study.
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spelling CGSpace1719132025-02-19T14:01:31Z Discount rates and credit markets: theory and evidence from rural India Pender, John L. capital markets rural areas credit interest rates land management credit control sales Three models of credit markets - (1) the permanent income model, (2) upward sloping credit supply to individual borrowers, and (3) constrained credit due to imperfect enforcement - are tested using credit market data and an experimental study of individuals' discount rates in south India. The permanent income model is rejected by both the discount rate and the credit market data. The discount rate data are consistent with either of the other two models, while the credit market data are consistent with a combination of these two models. Other explanations are found to be insufficient to explain the results of this study. 1996-08 2025-01-29T12:58:58Z 2025-01-29T12:58:58Z Journal Article https://hdl.handle.net/10568/171913 en Limited Access Elsevier Pender, John L. 1996. Discount rates and credit markets: theory and evidence from rural India. Journal of Development Economics 50(2): 257-296. https://doi.org/10.1016/S0304-3878(96)00400-2
spellingShingle capital markets
rural areas
credit
interest rates
land management
credit control
sales
Pender, John L.
Discount rates and credit markets: theory and evidence from rural India
title Discount rates and credit markets: theory and evidence from rural India
title_full Discount rates and credit markets: theory and evidence from rural India
title_fullStr Discount rates and credit markets: theory and evidence from rural India
title_full_unstemmed Discount rates and credit markets: theory and evidence from rural India
title_short Discount rates and credit markets: theory and evidence from rural India
title_sort discount rates and credit markets theory and evidence from rural india
topic capital markets
rural areas
credit
interest rates
land management
credit control
sales
url https://hdl.handle.net/10568/171913
work_keys_str_mv AT penderjohnl discountratesandcreditmarketstheoryandevidencefromruralindia