Households and Credit Restraints

Partha Dasgupta

in An Inquiry into Well-Being and Destitution

Published in print June 1995 | ISBN: 9780198288350
Published online November 2003 | e-ISBN: 9780191596094 | DOI:
 Households and Credit Restraints

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The main part of this chapter discusses the characteristics of the peasant household in terms of land, labour, savings, and credit. It has ten sections: (1) the peasant household (which is normally land owning); (2) credit constraints and the organization of production—using family or hired labour; (3) moral hazard, wage labour, and tenancy (the predominating forms are fixed‐rental contracts and sharecropping or metayage); (4) village enclaves as production units; (5) land, labour, and credit markets: observations on rural India; (6) agrarian relations in sub-Saharan Africa; (7) consumption as investment; (8) lack of credit among the assetless; (9) consumption smoothing; and (10) unemployment. An extra and separate section (designated Chapter *9) gives theoretical presentations on four aspects of households and credit constraints. These are (1) a model of the peasant household; (2) the precautionary motive for saving; (3) credit, insurance, and agricultural investment; and (4) why may credit be rationed.

Keywords: agrarian relations; consumption; credit; family labour; fixed‐rental contracts; hired labour; households; India; insurance; investment; labour; metayage; organization of production; organization of work; peasant households; peasants; rural economy; savings; sharecropping; sub‐Saharan Africa; tenancy; unemployment; villages; wage labour

Chapter.  5745 words.  Illustrated.

Subjects: Economic Development and Growth

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