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Will More Credit Increase Interest Rates in Rural Nepal?

Magnus Hatlebakk ()

Norway; Department of Economics, University of Bergen from Department of Economics, University of Bergen

Abstract: We test two alternative models of interest rates determination in informal rural credit markets, using data from a cross-sectional national household survey from Nepal. We find strong support for a full information, capacity-constrained and repeated oligopoly model with third-degree price discrimination. We find only marginal support for an asymmetric information cost-pricing monpolistic competition model.

Keywords: CREDIT; INTEREST RATE; OLIGOPOLIES (search for similar items in EconPapers)
JEL-codes: D43 O16 Q14 (search for similar items in EconPapers)
Pages: 48 pages
Date: 2000
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Persistent link: https://EconPapers.repec.org/RePEc:fth:bereco:2100

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More papers in Norway; Department of Economics, University of Bergen from Department of Economics, University of Bergen Department of Economics, University of Bergen Fosswinckels Gate 6. N-5007 Bergen, Norway. Contact information at EDIRC.
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