Asymmetric information in credit
Explain why asymmetric information in credit and insurance markets can be a substantial problem in
developing countries. What are some potential solutions to solving the problems of moral hazard and
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Order Paper Nowadverse selection in credit and insurance markets in developing countries? If you were to recommend
ONE policy change to a developing country government to help improve access to credit for poor
households, what would it be and why?
Sample Solution
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