Abstract

VEGA MENA, Maricela De La; SANTOYO CORTES, Vinicio Horacio; MUNOZ RODRIGUEZ, Manrrubio  and  ALTAMIRANO CARDENAS, J. Reyes. Reduction transaction costs and asymmetric information: experiences of rural finance in Mexico. Estud. soc [online]. 2017, vol.27, n.49, pp.181-209. ISSN 0188-4557.

Objective: Three rural finance experiences are analyzed to show how credit technologies solve the problems of asymmetric information and transaction costs. Methodology: Analyses of multiple cases are used to identify the common principles of credit technologies and their adaptations to each specific context. Results: the long-term relationships between actors, commercial contracts and the proximity of financial intermediaries reduce asymmetric information. While, the participation of economic organizations or private agents to grant and recovery the loans, drop transaction costs of lending to small producers. Limitations: Rural credit technologies are strongly influenced by institutional and regulatory frameworks, as well as by the local social and productive context, so the cases studied try to show the general principles and not make recommendations on specific practices to implement. Conclusions: the innovation in credit technology and long-term partnerships between actors reduce information problems and transaction costs. To increase theirs depth and scope, the Mexican rural development bank should promote these innovations among non-bank financial intermediaries.

Keywords : Regional development; credit technologies; rural finance; adverse selection; moral hazard; transaction costs.