The Control Study on Adverse Selection in Rural Credit Market Based on Farmer Household's Reputation

Farmer household's reputation is one of the main effect factor in rural credit cooperative(RCC).Reputation can reveal the integrating information about the farmer household's ability and moral,and only those farmers who are capable and have good moral can hold good reputation.The article use a signaling model to clarify how the RCCs identify the trustworthy farmer households by their reputation in the credit game between farmers and RCCs under the condition of asymmetric information,and so,the adverse selection can be controlled in the rural credit market.