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Sastry's 10-year study of New Orleans Katrina evacuees shows demographic differences between returning and nonreturning

Stafford says less educated, smaller investors more likely to sell off stock and lock in losses during market downturn

Chen says job fit, job happiness can be achieved over time

Highlights

Deirdre Bloome wins ASA award for work on racial inequality and intergenerational transmission

Bob Willis awarded 2015 Jacob Mincer Award for Lifetime Contributions to the Field of Labor Economics

David Lam is new director of Institute for Social Research

Elizabeth Bruch wins Robert Merton Prize for paper in analytic sociology

Next Brown Bag

Monday, Oct 12
Joe Grengs, Policy & Planning for Social Equity in Transportation

Competition Under Credit Rationing: Theory and Evidence From Rural China

Publication Abstract

Park, Albert F., L. Brandt, and J. Giles. 2003. "Competition Under Credit Rationing: Theory and Evidence From Rural China." Journal of Development Economics, 71(2): 463-495.

We present a duopoly model of financial competition to describe the conditions under which competition leads to greater bank effort when repressed financial systems ration credit. The model features an entrant that freely sets its interest rate, and an incumbent that must charge a rate below that which is market clearing. Both players may exert costly effort to inform themselves about borrower types. Using data on rural financial institutions in China, we test empirically the effects of competition on deposit growth, loan portfolio composition, repayment rates, and other effort measures, finding positive effects of competition on effort and financial performance. (C) 2003 Elsevier Science B.V. All rights reserved.

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