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The Economic Theory of Agrarian Institutions$
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Pranab Bardhan

Print publication date: 1991

Print ISBN-13: 9780198287629

Published to Oxford Scholarship Online: November 2003

DOI: 10.1093/0198287623.001.0001

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On Choice Among Creditors and Bonded Labour Contracts

On Choice Among Creditors and Bonded Labour Contracts

Chapter:
(p.203) 10. On Choice Among Creditors and Bonded Labour Contracts
Source:
The Economic Theory of Agrarian Institutions
Author(s):

T. N. Srinivasan

Publisher:
Oxford University Press
DOI:10.1093/0198287623.003.0010

In this chapter, the author looks into the conditions under which borrowing under a voluntary ‘bonded labour’ contract (whereby one may repay loans by providing labour services at less than one's opportunity cost) will be chosen by a sharecropper, if another source of credit besides the landlord is available.

Keywords:   bonded labour, credit ceiling, default, incentive compatibility, loans, opportunity cost, sharecropping

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