Informal finance: A theory of moneylenders

• 成果类型: Article
• 署名作者: Madestam, Andreas
• 署名单位: Stockholm University
• 刊物名称: JOURNAL OF DEVELOPMENT ECONOMICS
• ISSN/ISSBN: 0304-3878
• DOI: 10.1016/j.jdeveco.2013.11.001
• 发表日期: 2014
• 页码: 157-174
• 关键词: credit markets; financial development; institutions; market structure

摘要

I present a model that analyzes the coexistence of formal and informal finance in underdeveloped credit markets. Formal banks have access to unlimited funds but are unable to control the use of credit. Informal lenders can prevent non-diligent behavior but often lack the needed capital. The theory implies that formal and informal credit can be either complements or substitutes. The model also explains why weak legal institutions increase the prevalence of informal finance in some markets and reduce it in others, why financial market segmentation persists, and why informal interest rates can be highly variable within the same sub-economy. (C) 2013 The Author. Published by Elsevier B.V. All rights reserved.