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Frey and colleagues outline 10 trends showing scale of America's demographic transitions

Starr says surveys intended to predict recidivism assign higher risk to poor

Prescott and colleagues find incidence of noncompetes in U.S. labor force varies by job, state, worker education

Highlights

PAA 2015 Annual Meeting: Preliminary program and list of UM participants

ISR addition wins LEED Gold Certification

PSC Fall 2014 Newsletter now available

Martha Bailey and Nicolas Duquette win Cole Prize for article on War on Poverty

Next Brown Bag

Mon, March 9
Luigi Pistaferri, Consumption Inequality and Family Labor Supply

Joint Liability Lending and the Rise and Fall of China's Township and Village Enterprises

Publication Abstract

Park, Albert F., and M.G. Shen. 2003. "Joint Liability Lending and the Rise and Fall of China's Township and Village Enterprises." Journal of Development Economics, 71(2): 497-531.

We present a new explanation for the rise and fall of collectively owned enterprises based on the changing lending preferences of banks. Until the mid-1990s, bank loans to collective firms exhibited the key features of joint liability lending, supported by the sanctioning ability of local government leaders. However, subsequent changes in collateral, firm performance, interest rates and financial competition led banks to prefer individual lending to private firms. This explanation is supported by empirical analysis of the determinants of bank lending preferences, the involvement of township leaders in lending and the ability of firms to obtain loans. (C) 2003 Elsevier Science B.V. All rights reserved.

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