Credit markets in northern Nigeria: credit as insurance in a rural economy

Research output: Chapter in Book/Report/Conference proceedingChapter

18 Scopus citations

Abstract

This chapter addresses the issues of incomplete markets and imperfect information in the context of credit markets in rural northern Nigeria. It is found that credit transactions take advantage of the free flow of information within rural communities. Information asymmetries are unimportant, and their institutional consequences - the use of collateral and interlinked contracts - are absent. Credit transactions play a direct role in pooling risk among households through the use of contracts in which the repayment owed by the borrower depends on the realization of random production shocks by both the borrower and the lender. -from Author

Original languageEnglish (US)
Title of host publicationThe economics of rural organization
EditorsK. Hoff
PublisherOxford University Press, for World Bank
Pages87-108
Number of pages22
StatePublished - Dec 1 1993

ASJC Scopus subject areas

  • Earth and Planetary Sciences(all)
  • Environmental Science(all)

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    Udry, C. (1993). Credit markets in northern Nigeria: credit as insurance in a rural economy. In K. Hoff (Ed.), The economics of rural organization (pp. 87-108). Oxford University Press, for World Bank.