Equitable Redistribution and Inefficiency under Credit Rationing
Abstract It has been argued in many policy circles that lack of access to credit by the poor may be a source of inefficiency in developing economies. Then, conventional wisdom may suggest that asset redistribution from the rich to the poor improves efficiency. In contrast, we develop a general equilibrium model with credit market and show that such an egalitarian redistribution of assets may indeed lead to inefficiency.
Authors
- Hamid Beladi (ORCID: https://orcid.org/0000-0003-3784-8526)
- Suryaprakash Mishra (ORCID: https://orcid.org/0000-0003-4457-1270)
- Sugata Marjit (ORCID: https://orcid.org/0000-0003-0982-9811)
- Reza Oladi (ORCID: https://orcid.org/0000-0002-4621-7622)
Institutions
- Utah State University (US)
- Ifo Institute for Economic Research (DE)
- Hong Kong Polytechnic University (HK)
- Centre for Studies in Social Sciences Calcutta (IN)
- National Law School of India University (IN)
- The University of Texas at San Antonio (US)
Publication Details
- Journal
- The B E Journal of Economic Analysis & Policy
- Published
- 2025-07-01
- DOI
- https://doi.org/10.1515/bejeap-2024-0332
- Primary Topic
- Banking stability, regulation, efficiency
- Type
- article
- Field-Weighted Citation Impact
- 0.00