Price uncertainty and trader-farmer linkage
We show that the Pareto superiority of loan repayment in kind within a tied credit arrangement to a cash-for-cash scheme under uncertain output price depends crucially on the farmer loan demand elasticity and his risk aversion. For the risk-neutral trader, the cash-for-cash scheme is shown to be Par...
| Published in: | Journal of Public Economics 47, 3 (1992). |
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| Main Author: | |
| Format: | Article |
| Language: | English |
| Subjects: |