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Impact of Credit Market Exclusion on the Gini Coefficient

A significant question in the study of economic inequality is determining the effect on the Gini coefficient when certain potential borrowers are completely excluded from credit markets. This exclusion can happen to individuals who, despite their willingness to pay the going interest rate, are denied loans due to a lack of collateral or insufficient personal funds to contribute to a project.

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Updated 2025-08-29

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