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Owen-Smith says universities must demonstrate value of higher education

Armstrong says USC's removal of questions from a required Title IX training module may reflect student-administration relations

Fomby finds living with step- or half-siblings linked to higher aggression among 5 year olds

Highlights

PRB training program in policy communication for pre-docs. Application deadline, 2.28.2016

Call for proposals: PSID small grants for research on life course impacts on later life wellbeing

PSC News, fall 2015 now available

Barbara Anderson appointed chair of Census Scientific Advisory Committee

Next Brown Bag

Monday, Feb 1 at noon, 6050 ISR-Thompson
Sarah Miller

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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