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Trader-Lenders in the Rural LDC Credit Market

Emmanuel Esguerra and Raul Fabella
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Emmanuel Esguerra: School of Economics, University of the Philippines Diliman

No 199006, UP School of Economics Discussion Papers from University of the Philippines School of Economics

Abstract: We model the lending behavior of rural traders in a linked credit-output transaction. The likelihood of credit involvement with a trader rises with farmed area, with the combination of enforceability of repayment and demand elasticity and with the likelihood of procurement of marketable surplus by the trader. Data from the Philippines confirm these claims.

Date: 1990-05
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Published as UPSE Discussion Paper No. 1990-06, May 1990

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Persistent link: https://EconPapers.repec.org/RePEc:phs:dpaper:199006

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