Detail Financial liberalization and access to credit Bibliografi Author: Cilesiz, Yesim ; Gale, Douglas (Advisor) Topik: ECONOMICS; FINANCE Bahasa: (EN )    ISBN: 0-591-05265-2     Penerbit: Boston University     Tahun Terbit: 1997     Jenis: Theses - Dissertation Fulltext: 9639503.pdf (0.0B; 2 download) Abstract This dissertation is an attempt to find out the extent to which financial liberalization policies are successful in relaxing credit constraints in developing countries. Specifically, it focuses on 'preferential' or 'directed' credit policies that traditionally used the banking system to channel resources to certain sectors and establishments that were considered crucial in achieving growth. It explores the effectiveness of the elimination of these policies in providing firms that were discriminated against, and firms that were favored under them, with equal access to credit. It argues that, in the presence of informational asymmetries, the consequences of preferential credit policies might linger on even after the policies themselves are abandoned. To this end, a dynamic adverse selection model is employed, that encompasses several characteristics of credit markets in developing countries in a simplified context. Initially, a simple model is presented in which entrepreneurs, who differ with respect to how likely they are to succeed, pick identical projects. Since they do not have enough wealth to finance their projects, they have to resort to outside finance from lenders who cannot distinguish between different types of borrowers. Then, the model is extended to two-periods. Commitment and non-commitment relationships are analyzed. Afterwards, financial liberalization is incorporated by allowing new borrowers into the market in the second period. The result is that, when long-term commitment contracts exist, new borrowers will be worse off than old ones if project returns and wealth are low, and deposit supply is inelastic. There are conditions that are most likely to prevail in developing countries where liberalization is deemed necessary. The analytical results of the model show that the level of investment exceeds the socially efficient one. In order to achieve efficiency in the allocation of financial resources, it is necessary to tax either deposits or loans. Different taxes should be applied to new firms that the directed credit policies previously prevented from gaining access to the credit market, and to old firms that were able to obtain preferential credit. Opini Anda Klik untuk menuliskan opini Anda tentang koleksi ini! Lihat Sejarah Pengadaan  Konversi Metadata   Kembali

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