Replaced with revised version of paper 08/03/05.

This paper explores the productivity and income distribution effects 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 offer contracts to risk averse agents who...

We evaluate the impact of agricultural land market liberalization policies in Latin America by empirically examining the degree to which the reforms have broken down the dependence of operational area on owned area. We use panel data sets from Honduras and Peru to estimate the relationship...

We develop a model of sorting and matching between borrowers and lenders across formal and informal credit markets in a developing country context. We highlight the role of risk both on credit access and sectoral choice. We examine how activity and sectoral choice vary across agents with...

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...

Replaced with revised version of paper 08/03/05.

The material contained herein is supplementary to the article named in the title and published in the American Journal of Agricultural Economics.