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Workshops on EndNote, NIH reporting, and publication altmetrics, Jan 26 through Feb 7, ISR

2017 PAA Annual Meeting, April 27-29, Chicago

NIH funding opportunity: Etiology of Health Disparities and Health Advantages among Immigrant Populations (R01 and R21), open Jan 2017

Russell Sage 2017 Summer Institute in Computational Social Science, June 18-July 1. Application deadline Feb 17.

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Mon, Jan 23, 2017 at noon:
Decline of cash assistance and child well-being, Luke Shaefer

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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