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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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Rural Credit Markets: The Structure of Interest Rates, Exploitation, and Efficiency

Rural Credit Markets: The Structure of Interest Rates, Exploitation, and Efficiency

Chapter:
(p.147) 7. Rural Credit Markets: The Structure of Interest Rates, Exploitation, and Efficiency
Source:
The Economic Theory of Agrarian Institutions
Author(s):

Kaushik Basu

Publisher:
Oxford University Press
DOI:10.1093/0198287623.003.0007

In this chapter, the author models alternative structures in the informal credit market as devices for extracting surplus from the borrowers, and show how extremely exploitative moneylenders may have some superficial resemblance to markets with perfectly competitive moneylenders.

Keywords:   efficiency, exploitation, informal credit, loans, markets, moneylender, perfect competition

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