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Corruption, Default and Optimal Credit in Welfare Programs

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Author Info
Bibhas Saha ()
Abstract

In this paper a dynamic model of subsidized credit provision is presented to examine how asymmetric information exacerbates inefficiency caused by corruption. Though designed to empower the underprivileged, the fate of such credit programs largely depends on the efficiency of the credit delivery system. [IGIDR WP 2004-001].

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File URL: http://www.eSocialSciences.com/data/articles/Document11182008390.2109033.pdf
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Paper provided by esocialsciences.com in its series Working Papers with number id:1600.

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Date of creation: 2008
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Handle: RePEc:ess:wpaper:id:1600

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Related research
Keywords: credit; corruption; asymmetric; information; inefficiency; delivery; system;

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  1. Mishra, Ajit, 2002. "Hierarchies, incentives and collusion in a model of enforcement," Journal of Economic Behavior & Organization, Elsevier, vol. 47(2), pages 165-178, February. [Downloadable!] (restricted)
  2. Chaudhuri, Sarbajit & Gupta, Manash Ranjan, 1996. "Delayed formal credit, bribing and the informal credit market in agriculture: A theoretical analysis," Journal of Development Economics, Elsevier, vol. 51(2), pages 433-449, December. [Downloadable!] (restricted)
  3. Hindriks, Jean & Keen, Michael & Muthoo, Abhinay, 1999. "Corruption, extortion and evasion," Journal of Public Economics, Elsevier, vol. 74(3), pages 395-430, December. [Downloadable!] (restricted)
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  4. Saha, Bibhas, 2001. "Red tape, incentive bribe and the provision of subsidy," Journal of Development Economics, Elsevier, vol. 65(1), pages 113-133, June. [Downloadable!] (restricted)
  5. Banerjee, A.V., 1997. "A Theory of Misgovernance," Working papers 97-4, Massachusetts Institute of Technology (MIT), Department of Economics.
  6. Lewis, Tracy R. & Sappington, David E. M., 1989. "Countervailing incentives in agency problems," Journal of Economic Theory, Elsevier, vol. 49(2), pages 294-313, December. [Downloadable!] (restricted)
  7. Hoff, Karla & Stiglitz, Joseph E, 1990. "Imperfect Information and Rural Credit Markets--Puzzles and Policy Perspectives," World Bank Economic Review, Oxford University Press, vol. 4(3), pages 235-50, September.
  8. Choi, Jay Pil & Thum, Marcel, 2003. "The dynamics of corruption with the ratchet effect," Journal of Public Economics, Elsevier, vol. 87(3-4), pages 427-443, March. [Downloadable!] (restricted)
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  9. Maggi G. & Rodriguez-Clare A., 1995. "On Countervailing Incentives," Journal of Economic Theory, Elsevier, vol. 66(1), pages 238-263, June. [Downloadable!] (restricted)
  10. Lui, Francis T, 1985. "An Equilibrium Queuing Model of Bribery," Journal of Political Economy, University of Chicago Press, vol. 93(4), pages 760-81, August. [Downloadable!] (restricted)
  11. Banerjee, Abhijit V, 1997. "A Theory of Misgovernance," The Quarterly Journal of Economics, MIT Press, vol. 112(4), pages 1289-1332, November.
  12. Marjit, Sugata & Mukherjee, Vivekananda & Mukherjee, Arijit, 2000. "Harassment, corruption and tax policy," European Journal of Political Economy, Elsevier, vol. 16(1), pages 75-94, March. [Downloadable!] (restricted)
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This page was last updated on 2009-12-16.


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