Home > Publications . Search All . Browse All . Country . Browse PSC Pubs . PSC Report Series

PSC In The News

RSS Feed icon

Kusunoki says contraception use patterns suggest greater risk of unintended pregnancy among poor

Groves keynote speaker at MIDAS symposium, Nov 15-16: "Big Data: Advancing Science, Changing the World"

Shaefer says drop child tax credit in favor of universal, direct investment in American children

More News


Gonzalez, Alter, and Dinov win NSF "Big Data Spokes" award for neuroscience network

Post-doc Melanie Wasserman wins dissertation award from Upjohn Institute

ISR kicks off DE&I initiative with lunchtime presentation: Oct 13, noon, 1430 ISR Thompson

U-M ranked #4 in USN&WR's top public universities

More Highlights

Next Brown Bag

Mon, Nov 7 at noon:

Refinancing and decentralization: Evidence from China

Publication Abstract

Park, Albert F., and M.G. Shen. 2008. "Refinancing and decentralization: Evidence from China." Journal of Economic Behavior and Organization, 66(3-4): 703-730.

Decentralization can complement market liberalization by strengthening incentives of agents to respond to market signals. However, in China banks centralized lending authority following financial reforms in the mid-1990s. We present a new theory of financial decentralization in which centralization provides a credible commitment not to refinance bad projects by reducing available information. Using data from Chinese rural financial institutions, we empirically assess the determinants of decentralization and the likelihood of collateral seizure, strongly confirming the predictions of the refinancing model. We conclude that weak institutional environments may limit the efficiency of financial intermediation despite financial market liberalization. (c) 2007 Published by Elsevier B.V.

DOI:10.1016/j.jebo.2006.06.013 (Full Text)

Browse | Search : All Pubs | Next