A NOTE ON CREDIT MARKET DEVELOPMENT AND HUMAN CAPITAL ACCUMULATION
2013 ◽
Vol 17
(7)
◽
pp. 1525-1541
◽
Keyword(s):
This paper explores the interplay between credit market development and human capital accumulation in a two-period overlapping-generations economy with asymmetric information under the assumption that young lenders channel credits to young borrowers and acquire education. We find that, at the self-selection equilibrium, lenders will allocate more time to acquire education if the cost of screening borrowers falls. Furthermore, a longer duration of lenders' schooling time suppresses borrowers' incentive to cheat thereby enabling lenders to screen less frequently. Our preliminary cross-country empirical analysis appears to support these findings.
Keyword(s):
1997 ◽
Vol 64
(2)
◽
pp. 153-179
◽
Keyword(s):
2005 ◽
Vol 36
(3)
◽
pp. 354-373
◽
2011 ◽
Vol 28
(1-2)
◽
pp. 404-409
◽