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http://worldcat.org/entity/work/id/2280878402

Access to capital in rural Thailand an estimated model of formal versus informal credit

The aim of this paper is to understand the mechanism underlying access to credit. We focus on explaining two important aspects of rural credit markets in Thailand. First, moneylenders and other forms of informal financing coexist with formal lending institutions such as government or commercial banks, and more recently, micro-lending institutions. Second, potential borrowers face sizeable transaction costs obtaining external credit. We develop a model that provides a unified view of these facts and whose tractability allows a structural estimation. The results show large disparities between access to formal and informal credit. While for some households the cost of accessing a formal institution can be as large as the average amount borrowed, the transaction costs of credit from informal sources are negligible for everyone. In addition, the data strongly reject the hypothesis that access to formal credit is uniform across households. In fact, although proximity to a formal institution reduces the transaction cost, the importance of other measures suggest that informational asymmetries also play a role.

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  • "The aim of this paper is to understand the mechanism underlying access to credit. We focus on explaining two important aspects of rural credit markets in Thailand. First, moneylenders and other forms of informal financing coexist with formal lending institutions such as government or commercial banks, and more recently, micro-lending institutions. Second, potential borrowers face sizeable transaction costs obtaining external credit. We develop a model that provides a unified view of these facts and whose tractability allows a structural estimation. The results show large disparities between access to formal and informal credit. While for some households the cost of accessing a formal institution can be as large as the average amount borrowed, the transaction costs of credit from informal sources are negligible for everyone. In addition, the data strongly reject the hypothesis that access to formal credit is uniform across households. In fact, although proximity to a formal institution reduces the transaction cost, the importance of other measures suggest that informational asymmetries also play a role."@en
  • ""The aim of this paper is to understand the mechanism underlying access to credit. Gine focuses on two important aspects of rural credit markets in Thailand. First, moneylenders and other informal lenders coexist with formal lending institutions such as government or commercial banks, and more recently, micro-lending institutions. Second, potential borrowers presumably face sizable transaction costs obtaining external credit. The author develops and estimates a model based on limited enforcement and transaction costs that provides a unified view of those facts. The results show that the limited ability of banks to enforce contracts, more than transaction costs, is crucial in understanding the observed diversity of lenders. This paper--a product of the Finance Team, Development Research Group--is part of a larger effort in the group to understand access to credit."--Page 2 of cover."@en
  • ""The aim of this paper is to understand the mechanism underlying access to credit. Gine focuses on two important aspects of rural credit markets in Thailand. First, moneylenders and other informal lenders coexist with formal lending institutions such as government or commercial banks, and more recently, micro-lending institutions. Second, potential borrowers presumably face sizable transaction costs obtaining external credit. The author develops and estimates a model based on limited enforcement and transaction costs that provides a unified view of those facts. The results show that the limited ability of banks to enforce contracts, more than transaction costs, is crucial in understanding the observed diversity of lenders. This paper--a product of the Finance Team, Development Research Group--is part of a larger effort in the group to understand access to credit"--World Bank web site."
  • ""The aim of this paper is to understand the mechanism underlying access to credit. Gine focuses on two important aspects of rural credit markets in Thailand. First, moneylenders and other informal lenders coexist with formal lending institutions such as government or commercial banks, and more recently, micro-lending institutions. Second, potential borrowers presumably face sizable transaction costs obtaining external credit. The author develops and estimates a model based on limited enforcement and transaction costs that provides a unified view of those facts. The results show that the limited ability of banks to enforce contracts, more than transaction costs, is crucial in understanding the observed diversity of lenders. This paper--a product of the Finance Team, Development Research Group--is part of a larger effort in the group to understand access to credit"--World Bank web site."@en

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  • "Access to capital in rural Thailand"
  • "Access to capital in rural Thailand An estimated model of formal versus informal credit"
  • "Access to capital in rural Thailand an estimated model of formal versus informal credit"@en
  • "Access to capital in rural Thailand : an estimated model of formal versus informal credit"
  • "Access to Capital in Rural Thailand an Estimated Model of Formal versus Informal Credit"
  • "Access to capital in rural Thailand : An estimated model of formal versus informal credit"
  • "Access to capital in rural Thailand : an estimated model of formal vs. informal credit"@en
  • "Access to capital in rural Thailand : an estimated model of formal vs. informal credit"
  • "Access to capital in rural Thailand an estimated model of formal vs. informal credit"

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