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A theory of interlinked rural transactions (Английский)

This paper argues that the interlinking of labor, output, and credit contracts often observed in rural economies can be regarded as an attempt to improve allocative efficiency in the face of moral hazard. It advances an economic explanation of the phenomenon which is rooted in the view that prevalent modes of transaction, of which interlinked contracts are an example, are shaped by technological considerations. Interlinking is shown to be an efficient...
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