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