Microeconomic Behavior of Agents in a Credit-Output Market in an Agricultural Setting

Rural agents engage in interlocking market transactions to minimize costs due to underdevelopment of rural markets. This study aims to model the economic behavior of agents in a credit-output market. Results indicate the prevalence of high interest rates in developed areas. Where income is low, transaction costs are high and the market is segmented, informal lenders are useful on efficiency grounds. Hence, the first-best solution appears to be augmenting farmer’s income.

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Year of publication:	1989
Authors:	Geron, Maria Piedad S.
Institutions:	Philippine Institute for Development Studies (PIDS), Government of the Philippines
Subject:	economic/development modelling \| income \| rural sector \| credit market \| transaction costs

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Extent:	application/pdf
Series:	Philippine Journal of Development.
Type of publication:	Book / Working Paper
Notes:	Number JPD 1989 Vol. XVI No.1-a 3 pages long
Source:	RePEc - Research Papers in Economics

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