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Rural Credit Markets and Aggregate Shocks: The Experience of Nuits St. Georges, 1756–1776

Published online by Cambridge University Press:  03 March 2009

Jean-Laurent Rosenthal
Jean-Laurent Rosenthal
Affiliation:
Associate Professor of Economics at UCLA, 405 Hilgard Ave., Los Angeles, CA 90024.
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Abstract

Using a complete enumeration of credit contracts for a rural area in Burgundy, this article examines how credit markets functioned and what role they served. Credit markets distributed funds to a large fraction of the population, and they were organized to mediate problems of asymmetric information. A central constraint on credit markets, however, was the threat of government intervention. Because of this threat, capital markets remained relatively isolated from one another.

Type
Articles
Information
The Journal of Economic History , Volume 54 , Issue 2 , June 1994 , pp. 288 - 306
Copyright
Copyright © The Economic History Association 1994

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