The Effects on Peasant Households of Access to Formal Deposits and Loans
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Date
1995-11
Journal Title
Journal ISSN
Volume Title
Publisher
Ohio State University. Department of Agricultural, Environmental, and Development Economics
Abstract
A dynamic, stochastic, rational expectations model of a peasant household with access to deposits and loans (up to a credit limit) is solved and simulated. If formal contracts offer more favorable rates than informal contracts, then access to formal contracts increases average consumption and decreases its standard deviation.