Price Uncertainty and Loan Repayment in-Kind

Raul Fabella

No 198910, UP School of Economics Discussion Papers from University of the Philippines School of Economics

Abstract: 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 attitude. When demand is inelastic, risk aversion among farmers is required for Pareto superiority. We show that certain soft credit intervention initiatives may have output effects opposite to those intended.

Date: 1989-08
References: Add references at CitEc
Citations: View citations in EconPapers (1)

Published as UPSE Discussion Paper No. 1989-10, August 1989

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:phs:dpaper:198910

Access Statistics for this paper

More papers in UP School of Economics Discussion Papers from University of the Philippines School of Economics Contact information at EDIRC.
Bibliographic data for series maintained by RT Campos ().