Equitable Redistribution and Inefficiency under Credit Rationing
Document Type
Research Article
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.
DOI
https://doi.org/10.1515/bejeap-2024-0332
Publication Date
7-2-2025
Recommended Citation
Beladi H and others, ‘Equitable Redistribution and Inefficiency under Credit Rationing’ [2025] The B.E. Journal of Economic Analysis & Policy accessed 7 July 2025
Journal
The B.E. Journal of Economic Analysis & Policy