The New Palgrave Dictionary of Economics

2018 Edition
| Editors: Macmillan Publishers Ltd

Agricultural Finance

  • Michael R. Carter
Reference work entry


Economic analysis of agricultural finance has traditionally focused on access to capital in the agricultural sector. Key concerns have included patterns of non-price rationing in agricultural credit markets, the institutions and contracts that provide credit to agricultural producers, the implications of the conditions of capital access on agricultural growth and rural income distribution, and the role of the public sector in agricultural credit markets. More recently, the analysis of agricultural finance has expanded beyond these credit-centred concerns to consider systemic approaches to rural finance that address risk and insurance, savings services and the provision of credit.


Adverse selection Agricultural banks Agricultural finance Agricultural markets in developing countries Asymmetric information Credit markets in developing countries Credit rationing Grameen Bank Green Revolution Microcredit Moneylenders in developing countries 

JEL Classifications

This is a preview of subscription content, log in to check access.


  1. Adams, D., D. Graham, and J. von Pischke. 1984. Undermining rural development with cheap credit. Boulder: Westview Press.Google Scholar
  2. Banerjee, A., and N. Newman. 1993. Occupational choice and the process of development. Journal of Political Economy 101: 274–298.CrossRefGoogle Scholar
  3. Barham, B., M. Carter, and W. Sigelko. 1995. Agro-export production and peasant land access, examining the dynamic between adoption and accumulation. Journal of Development Economics 46: 85–107.CrossRefGoogle Scholar
  4. Bell, C., T. Srinivasan, and C. Udry. 1997. Rationing, spillover and interlinking in credit markets: The case of rural Punjab. Oxford Economic Papers 49: 557–585.CrossRefGoogle Scholar
  5. Binswanger, H., K. Deininger, and G. Feder. 1995. Power, distortions, revolt and reform in agricultural and land relations. In Handbook of development econo mics, ed. J. Behrman and T. Srinivasan, Vol. IIIB. Amsterdam: North-Holland.Google Scholar
  6. Braverman, A., and J. Guasch. 1986. Rural credit markets and institutions in developing countries: Lessons for policy analysis from practice and modern theory. World Development 14: 1253–1267.CrossRefGoogle Scholar
  7. Braverman, A., and M. Huppi. 1991. Improving rural finance in developing countries. Finance and Development 28: 42–44.Google Scholar
  8. Brewster, J. 1950. The machine process in agriculture and industry. Journal of Farm Economics 32: 69–81.CrossRefGoogle Scholar
  9. Carter, M. 1988. Equilibrium credit rationing of small farm agriculture. Journal of Development Economics 28: 83–103.CrossRefGoogle Scholar
  10. Carter, M., and P. Olinto. 2003. Getting institutions right for whom? Credit constraints and the impact of property rights on the quantity and composition of investment. American Journal of Agricultural Economics 85: 173–186.CrossRefGoogle Scholar
  11. Conning, J. 1999. Outreach, sustainability and leverage in monitored and peermonitored lending. Journal of Development Economics 60: 51–77.CrossRefGoogle Scholar
  12. Dercon, S. 1998. Wealth, risk and activity choice, Cattle in Western Tanzania. Journal of Development Economics 55: 1–42.CrossRefGoogle Scholar
  13. Eswaran, M., and A. Kotwal. 1986. Access to capital and agrarian production organization. Economic Journal 96: 482–498.CrossRefGoogle Scholar
  14. Feder, G., and N. Akihiko. 1999. The benefits of land titling and registration: economic and social perspectives. Land Policy Studies 15: 25–43.CrossRefGoogle Scholar
  15. Fleisig, H. and de la Peña, N. 2003. Legal and regulatory requirements for effective rural finance markets. Paper presented at the Paving the Way Forward for Rural Finance Conference, Washington, DC, 2–3 June. Online. Available at Accessed 21 Nov 2005.
  16. Gonzalez-Vega, C. 2003. Deepening rural financial markets: Macroeconomic, policy and political dimensions. Paper presented at the Paving the Way Forward for Rural Finance Conference, Washington, DC, 2–3 June. Online. Available at Accessed 21 Nov 2005.
  17. Jappelli, T., and M. Pagano. 2002. Information sharing, lending and defaults: Crosscountry evidence. Journal of Banking & Finance 26: 2017–2045.CrossRefGoogle Scholar
  18. Kochar, A. 1997. An empirical investigation of rationing constraints in rural markets in India. Journal of Development Economics 53: 339–372.CrossRefGoogle Scholar
  19. Mookherjee, D., and D. Ray. 2000. Contractual structure and wealth accumulation. American Economic Review 92: 818–849.CrossRefGoogle Scholar
  20. Skees, J., and B. Barnett. 1999. Conceptual and practical considerations for sharing catastrophic/systemic risks. Review of Agricultural Economics 21: 424–441.Google Scholar
  21. Stiglitz, J., and A. Weiss. 1981. Credit rationing in markets with imperfect information. American Economic Review 71: 393–410.Google Scholar
  22. USDA (US Department of Agriculture). 2004. Agriculture income and finance outlook/AIS–82. Washington, DC: Economic Research Service, USDA.Google Scholar
  23. Wenner, M., J. Alvarado, and F. Galarza. 2003. Promising practices in rural finance, experiences from Latin America and the Caribbean. Lima: Inter-American Development Bank.Google Scholar
  24. Zeller, M., and R. Meyer. 2002. The triangle of microfinance, outreach, financial sustainability and impact. Baltimore: Johns Hopkins University Press.Google Scholar
  25. Zimmerman, F., and M. Carter. 2003. Asset smoothing, consumption smoothing and the reproduction of inequality under risk and subsistence constraints. Journal of Development Economics 71: 233–260.CrossRefGoogle Scholar

Copyright information

© Macmillan Publishers Ltd. 2018

Authors and Affiliations

  • Michael R. Carter
    • 1
  1. 1.