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Authordc.contributor.authorBarbier, Edward B. 
Authordc.contributor.authorLópez Vega, Ramón 
Authordc.contributor.authorHochard, Jacob P. 
Cita de ítemdc.identifier.citationEnviron. Resource Economics (2016) 63:411–427en_US
Identifierdc.identifier.otherDOI: 10.1007/s10640-015-9890-4
General notedc.descriptionArtículo de publicación ISIen_US
Abstractdc.description.abstractThis paper develops a model to capture the key features of poverty, credit constraints and resource management faced by poor rural households. We assume that, due to the existence of asymmetric information and moral hazard, the household faces an increasing cost of credit as its debt/equity ratio rises. A household exploiting a natural resource may fall into a poverty trap, but only if it is unable to afford the increasing borrowing costs implied by increasing debt to allow it to avoid such a trap, or if it discounts future utility so much that a balanced growth path cannot be financed at any level of long-run borrowing. In contrast, along an optimal balanced growth path, the household's asset wealth, purchased inputs, resource stock and consumption increase at the same constant rate. However, over the long run there may be carrying capacity limits that prevent the resource from improving further. The household may then direct its savings to accumulating financial assets, and eventually under certain conditions may become a net creditor with resource exploitation becoming a less and less important source of its income.en_US
Type of licensedc.rightsAtribución-NoComercial-SinDerivadas 3.0 Chile*
Link to Licensedc.rights.uri*
Keywordsdc.subjectLand degradationen_US
Keywordsdc.subjectPoverty trapsen_US
Keywordsdc.subjectLess favoured agricultural landen_US
Keywordsdc.subjectRural crediten_US
Keywordsdc.subjectRural householdsen_US
Títulodc.titleDebt, Poverty and Resource Management in a Rural Smallholder Economyen_US
Document typedc.typeArtículo de revistaen_US

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Atribución-NoComercial-SinDerivadas 3.0 Chile
Except where otherwise noted, this item's license is described as Atribución-NoComercial-SinDerivadas 3.0 Chile