A Theory of Two-Tier Interlinkage in the Agricultural Credit Market: Comments

Posted: 27 Jan 2002

Abstract

Gupta (1993) presented a theory of co-existence of interlinked credit-labour contract and interlinked credit-product contract in backward agriculture using the 'consumption efficiency hypothesis' of Leibenstein (1957). In this paper, we present an alternative theory of the two-tier interlinkage in terms of credit market imperfection. This paper also shows that product market imperfection, alone or coupled with credit market imperfection, may not be able to explain this type of interlinkage.

Keywords: Two-tier interlinkage, Consumption efficiency hypothesis, Credit market imperfection.

JEL Classification: Q15, D89

Suggested Citation

Chaudhuri, Sarbajit, A Theory of Two-Tier Interlinkage in the Agricultural Credit Market: Comments. Available at SSRN: https://ssrn.com/abstract=296321

Sarbajit Chaudhuri (Contact Author)

University of Calcutta ( email )

56A, B.T. Road
Kolkata, West Bengal 700 050
India
+91 33 2557 5082 (Phone)
+91 33 2844 1490 (Fax)

HOME PAGE: http://econpapers.repec.org/RAS/pch11.htm

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