Lecture 0518

Lecture 0518 - Lecture 5/18/10 Business Today:...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Lecture 5/18/10 Business Today: institutional responses to asymmetric information in credit markets o Government policy o Lender strategies o Micro-finance Readings for Today o *Hoff and Stiglitz: “Imperfect Information and Rural Credit Markets: Puzzles and Policy Perspectives” o Thursday: Risk and Risk Aversion o *Morduch’s “Income Smoothing and Consumption Smoothing” Next Week: Insurance Markets o *Barnett, etc. “Poverty Traps and Index Based Risk Transfer Products” Sections this week o Micro-finance video and discussion o Problem set 3 questions and Selective discussion of midterm Problem set 3 due in class next Tuesday (5/25) Review of Last Time Our central question: is a potato like a loan? Lender is “purchasing” a claim to future resources The “quality” of this purchase depends on how large default risk is This leads to competing theories (paradigms) about credit markets
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 2

Lecture 0518 - Lecture 5/18/10 Business Today:...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online