Credit and efficiency in centralized and decentralized economies.pdf

The Review of Economic Studies Ltd. Credit and Efficiency in Centralized and Decentralized Economies Author(s): M. Dewatripont and E. Maskin Source: The Review of Economic Studies, Vol. 62, No. 4 (Oct., 1995), pp. 541-555 Published by: The Review of Economic Studies Ltd. Stable URL: /stable/2298076 Accessed: 22/11/2008 03:06 Your use of the JSTOR archive indicates your acceptance of JSTORs Terms and Conditions of Use, available at /page/info/about/policies/terms.jsp. JSTORs Terms and Conditions of Use provides, in part, that unless you have obtained prior permission, you may not download an entire issue of a journal or multiple copies of articles, and you may use content in the JSTOR archive only for your personal, non-commercial use. Please contact the publisher regarding any further use of this work. Publisher contact information may be obtained at /action/showPublisher?publisherCode=resl. Each copy of any part of a JSTOR transmission must contain the same copyright notice that appears on the screen or printed page of such transmission. JSTOR is a not-for-profit organization founded in 1995 to build trusted digital archives for scholarship. We work with the scholarly community to preserve their work and the materials they rely upon, and to build a common research platform that promotes the discovery and use of these resources. For more information about JSTOR, please contact support@. The Review of Economic Studies Ltd. is collaborating with JSTOR to digitize, preserve and extend access to The Review of Economic Studies. Review of Economic Studies (1995) 62, 541-555 0034-6527/9502.00 ? 1995 The Review of Economic Studies Limited Credit and Efficiency in Centralized and Decentralized Economies M. DEWATRIPONT DULBEA and ECARE (Universite Libre de Bruxelles), CEPR and CORE and E. MASKIN Harvard University First version received A ugust 1990; final version accepted Apr-il 1995 (Eds.) We study a credit model where, because of adverse selection, unp