This paper, based on a field investigation in rural West Bengal, aims to identify possible ways which can enhance the farm income of marginal farmers. It is observed that micro-credit system under joint liability credit contract play dominant role during time disbursement institutional credit, but availability and size this mainly depend operational holdings households. also provided through sy...

We present a dynamic cash-management model where agents choose whether to pay with cash or credit at every point in time. In the model credit usage depends on the current stock of cash, a novel result that matches recent micro evidence on household’s payment choices. The optimality of such decision rule is novel and cannot be obtained by models where cash-credit decisions are made at the “begin...

The financial crisis of 2007-9 has sparked keen interest in models of financial frictions and their impact on macro activity. Most models share the feature that borrowers suffer a contraction in the quantity of credit. However, the evidence suggests that although bank lending contracts during the crisis, bond financing actually increases to make up much of the gap. This paper reviews both aggre...

Using macroand micro-level data, we establish three stylized facts: (1) fluctuations in idiosyncratic uncertainty can have a large effect on aggregate investment; (2) the impact of uncertainty on investment occurs largely through changes in credit spreads; and (3) financial shocks—identified vis-à-vis orthogonal innovations to credit spreads—have a strong effect on investment, irrespective of t...

Abstract This paper investigates the effect of access to finance on job growth in over 780,000 firms across twenty-two developing countries. Using introduction credit bureaus as an exogenous shock supply credit, finds that increased results higher employment growth, especially among micro, small, and medium enterprises. The are robust using firm-fixed effects, industry measures external depende...

Many factors innuence the performance of a learned classiier. In this paper we study diier-ent methods of measuring performance based on a uniied set of cost models and the eeects of training class distribution with respect to these models. Observations from these eeects help us devise a distributed multi-classiier meta-learning approach to learn in domains with skewed class distributions, non-...

In this paper we provide a micro model of loans which the lender is a monopolistic bank and the borrower is a competitive consumer with consumption habits who may default on part of his debt. In this setting, we prove that the loan demand curve is kinked and therefore it is possible to find interest rate rigidity in equilibrium as well as asymmetric response of loans to interest rate variations...

Recent California legislation extends the application of prevailing wage regulations to subsidized low-income residential construction projects. Econometric evidence based on micro data covering 205 residential projects subsidized by the California Low Income Housing Tax Credit since 1996 and completed by mid-2002 demonstrates that construction costs increased substantially under prevailing wag...

To study the impact of stochastic interest rates and capital illiquidity on investment and firm value, we incorporate a widely-used arbitrage-free term structure model of interest rates into a standard q-theoretic framework. Our generalized q model informs us to use corporate credit-risk information to predict investments when empirical measurement issues of Tobin’s average q are significant (e...

A neoclassical growth model is augmented by a corporate sector, financial intermediation, and a set of tax rates. In this setting, capital structure is determined by the interplay between a tax advantage of debt finance and costly state verification entailed by asymmetric information. Effects of capital tax reforms are investigated with a special focus on this micro-founded credit channel of ta...