dc.contributor.author | Hatlebakk, Magnus | |
dc.date.accessioned | 2018-01-04T08:16:38Z | |
dc.date.available | 2018-01-04T08:16:38Z | |
dc.date.issued | 2000-01-01 | |
dc.identifier | oai:www.cmi.no:1889 | |
dc.identifier.citation | (PDF is a revised version of Department of Economics. University of Bergen. no. WP-21-2000) | |
dc.identifier.uri | http://hdl.handle.net/11250/2474651 | |
dc.description.abstract | We test two alternative models of interest rates determination in informal rural credit markets, using LSMS data from Nepal. We find strong support for a capacity-constrained collusive oligopoly model with full information about actual borrowers that supports heterogeneous interest rates. We find only marginal support for a competitive cost-pricing model with imperfect information. Price discrimination depends on the observable characteristics; caste, installment period and geographical region. Interest rates decrease as village lending capacity increases up to a certain level of capacity. Interest rates do not depend on risk related variables such as land value and loan size. | |
dc.language.iso | eng | |
dc.relation | PDF is a revised version of Department of Economics. University of Bergen. | |
dc.relation | WP-21-2000 | |
dc.relation.ispartof | PDF is a revised version of Department of Economics. University of Bergen. | |
dc.relation.ispartofseries | PDF is a revised version of Department of Economics. University of Bergen. WP-21-2000 | |
dc.relation.uri | https://www.cmi.no/publications/1889-will-more-credit-increase-interest-rates-in-rural | |
dc.subject | Nepal | |
dc.title | Will more credit increase interest rates in rural Nepal? | |
dc.type | Research report | |