Recent theoretical and empirical evidence suggests that risk (especially covariant risk that is correlated across producers) may discourage both the supply of agricultural credit and the willingness of small holders to utilize available credit and enjoy the higher expected incomes credit could...

This paper explores the productivity and income distribution e.ects of asymmetric information and risk preferences on the credit market. A model of contract design in the presence of moral hazard is developed in which competitive, risk neutral lenders o.er contracts to risk averse agents who...

Beginning in January 1991, the U.S. Agency for International Development funded a series of studies on land, employment, and financial markets in the peri-urban areas of Maputo. Beginning in September 1991, a land-market survey involving 121 households and 162 plots of land was administered in...

The material contained herein is supplementary to the article named in the title and published in the American Journal of Agricultural Economics, Volume 89, Number 4, November 2007.

The availability of immigrant farmworkers from Mexico critically shapes fruit, vegetable, and horticultural (FVH) production in the United States. We test the impact of recent policy reforms on the supply of Mexican labor to U.S. farms, using a 2-way fixed effects model and new data from rural...

This paper evaluates the performance of a rural credit market in Peru. We develop a model that shows that collateral requirements imposed by lenders in response to asymmetric information can lead not just to quantity rationing but also to transaction cost rationing and risk rationing. Just like...