IDEAS home Printed from https://ideas.repec.org/a/oup/oxecpp/v39y1987i2p333-42.html
   My bibliography  Save this article

Small Farmers, Moneylenders and Trading Activity

Author

Listed:
  • Gangopadhyay, Shubhashis
  • Sengupta, Kunal

Abstract

In this paper, the authors show how an interlinkage between the credit and output markets is an endogenous outcome of credit market imperfections. Also, such interlinkages are Pareto optimal. This is worked out under the assumption of infinite availability of funds with the money lender. If, however, the lender faces a loanable funds constraint, it is not optimal for him to interlink, and he charges monopoly rates of interest. The paper, therefore, endogenously develops various forms of trading and lending activities. Copyright 1987 by Royal Economic Society.

Suggested Citation

  • Gangopadhyay, Shubhashis & Sengupta, Kunal, 1987. "Small Farmers, Moneylenders and Trading Activity," Oxford Economic Papers, Oxford University Press, vol. 39(2), pages 333-342, June.
  • Handle: RePEc:oup:oxecpp:v:39:y:1987:i:2:p:333-42
    as

    Download full text from publisher

    File URL: http://links.jstor.org/sici?sici=0030-7653%28198706%292%3A39%3A2%3C333%3ASFMATA%3E2.0.CO%3B2-F&origin=bc
    File Function: full text
    Download Restriction: Access to full text is restricted to JSTOR subscribers. See http://www.jstor.org for details.

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Ermisch, John & Ogawa, Naohiro (ed.), 1994. "The Family, the Market, and the State in Ageing Societies," OUP Catalogue, Oxford University Press, number 9780198288183.
    2. Alicia Adsera, 2005. "Vanishing Children: From High Unemployment to Low Fertility in Developed Countries," American Economic Review, American Economic Association, vol. 95(2), pages 189-193, May.
    3. Boeri, Tito & Del Boca, Daniela & Pissarides, Christopher (ed.), 2005. "Women at Work: An Economic Perspective," OUP Catalogue, Oxford University Press, number 9780199281886.
    4. Angrist, Joshua D & Evans, William N, 1998. "Children and Their Parents' Labor Supply: Evidence from Exogenous Variation in Family Size," American Economic Review, American Economic Association, vol. 88(3), pages 450-477, June.
    5. Pedro Mira & Namkee Ahn, 2002. "A note on the changing relationship between fertility and female employment rates in developed countries," Journal of Population Economics, Springer;European Society for Population Economics, vol. 15(4), pages 667-682.
    6. José María Da Rocha & Luisa Fuster, 2006. "Why Are Fertility Rates And Female Employment Ratios Positively Correlated Across O.E.C.D. Countries?," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 47(4), pages 1187-1222, November.
    7. Patricia Apps & Ray Rees, 2004. "Fertility, Taxation and Family Policy," Scandinavian Journal of Economics, Wiley Blackwell, vol. 106(4), pages 745-763, December.
    8. Carrasco, Raquel, 2001. "Binary Choice with Binary Endogenous Regressors in Panel Data: Estimating the Effect of Fertility on Female Labor Participation," Journal of Business & Economic Statistics, American Statistical Association, vol. 19(4), pages 385-394, October.
    9. Jérôme De Henau & Danièle Meulders & Sile Padraigin O'Dorchai, 2007. "Parents' care and career: comparing parental leave policies," ULB Institutional Repository 2013/9277, ULB -- Universite Libre de Bruxelles.
    10. Ariza, Alfredo & De la Rica Goiricelaya, Sara & Ugidos Olazabal, Arantza, 2003. "The effect of flexibility in working hours on fertility: A comparative analysis of selected european countries," DFAEII Working Papers 2003-08, University of the Basque Country - Department of Foundations of Economic Analysis II.
    11. Datta Gupta, Nabanita & Smith, Nina & Verner, Mette, 2006. "Child Care and Parental Leave in the Nordic Countries: A Model to Aspire to?," IZA Discussion Papers 2014, Institute for the Study of Labor (IZA).
    12. Barmby, T & Cigno, A, 1990. "A Sequential Probability Model of Fertility Patterns," Journal of Population Economics, Springer;European Society for Population Economics, vol. 3(1), pages 31-51, April.
    13. Pedro Mira & Namkee Ahn, 2001. "Job bust, baby bust?: Evidence from Spain," Journal of Population Economics, Springer;European Society for Population Economics, vol. 14(3), pages 505-521.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Sen, Debapriya, 2011. "A theory of sharecropping: The role of price behavior and imperfect competition," Journal of Economic Behavior & Organization, Elsevier, vol. 80(1), pages 181-199.
    2. Debapriya Sen, 2005. "Sharecropping, interlinkage, and price variation," Department of Economics Working Papers 05-10, Stony Brook University, Department of Economics.
    3. Bibhas Saha & Tridib Sharma, 2011. "Interest rate discrimination, tenancy and cost sharing," Indian Growth and Development Review, Emerald Group Publishing, vol. 4(2), pages 153-165, September.
    4. Aggarwal, Rimjhim M., 2006. "Resource-Poor Farmers in South India: On the Margins or Frontiers of Globalization?," WIDER Working Paper Series 097, World Institute for Development Economic Research (UNU-WIDER).
    5. Sarbajit Chaudhuri, 2000. "Interactions Between Two Informal Sector Lenders and Interest Rate Determination in The Informal Credit Market: A Theoretical Analysis," Indian Economic Review, Department of Economics, Delhi School of Economics, vol. 35(2), pages 155-174, July.
    6. Chakrabarty, Debajyoti & Chaudhuri, Ananish, 2001. "Formal and informal sector credit institutions and interlinkage," Journal of Economic Behavior & Organization, Elsevier, vol. 46(3), pages 313-325, November.
    7. Ananish Chaudhuri & Pushkar Maitra, 1997. "Determinants of Land Tenure Contracts; Theory and Evidence from Rural India," Departmental Working Papers 199710, Rutgers University, Department of Economics.
    8. Benfica, Rui M.S., 2007. "Income Poverty Effects of Expansion and Policies in Cash Cropping Economies in Rural Mozambique: An Economy-wide Approach," Food Security Collaborative Working Papers 56070, Michigan State University, Department of Agricultural, Food, and Resource Economics.
    9. Jayne, T.S. & Yamano, Takashi & Nyoro, James, 2004. "Interlinked credit and farm intensification: evidence from Kenya," Agricultural Economics, Blackwell, vol. 31(2-3), pages 209-218, December.
    10. 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.
    11. Lefèvre, Mélanie & Tharakan, Joe, 2011. "Intermediaries, transport costs and interlinked transactions," CEPR Discussion Papers 8615, C.E.P.R. Discussion Papers.
    12. Sarbajit Chaudhuri, 2005. "Interaction Of Formal And Informal Credit Markets In Backward," Game Theory and Information 0511001, EconWPA.
    13. Sarbajit Chaudhuri & Asis Kumar Banerjee, 2005. "Credit-Product Interlinkage, Captive Markets And Trade Liberalization In Agriculture: A Theoretical Analysis In Agriculture: A Theoretical Analysis," Game Theory and Information 0510011, EconWPA.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:oup:oxecpp:v:39:y:1987:i:2:p:333-42. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Oxford University Press) or (Christopher F. Baum). General contact details of provider: https://academic.oup.com/oep .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.