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The first model of V. Chandra and M. A. Khan (1993) has been extended in the following directions: (1) migration equilibrium condition has been generalized; (2) capital market distortion has been introduced; and (3) land as an agricultural input has been considered. It appears that the...
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The paper presents a theory of interest rate determination on informal credit in backward agriculture when there is a market for formal credit. The farmer has to bribe the official of the formal credit agency in order to get formal credit. The official and the moneylender play a non-cooperative...
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