Credit Constraints, Collateral and Lending to the Poor

In the development economics literature it is common to read that the poor cannot invest to escape their poverty because they are credit constrained, and that they are credit constrained because they lack collateral. In this paper the author deconstructs these often heard arguments and finds them fundamentally flawed. He argues that lack of collateral is not the reason why the poor often are credit constrained?lack of regular income is.

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Year of publication:	2014
Authors:	Fafchamps, Marcel
Published in:	Revue d’économie du développement. - Centre d'Études et de Recherches sur le Développement International (CERDI). - Vol. 22.2014, HS01, p. 71-89
Publisher:	Centre d'Études et de Recherches sur le Développement International (CERDI)
Subject:	poverty \| debt \| savings

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Extent:	application/pdf text/html
Type of publication:	Article
Source:	RePEc - Research Papers in Economics

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