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Moneylenders and bankers: price-increasing subsidies in a monopolistically competitive market

Stiglitz, Joseph E.; Hoff, Karla

Focuses on the development of models of markets with endogenous enforcement costs, which were motivated by rural credit markets' studies. In-depth look at interest rates; Indication that government-subsidized formal credit's infusions have not improved the terms offered by moneylenders; Costs of enforcement in relation to economics; Details on scale economies.



Also Published In

Journal of Development Economics

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April 17, 2013
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