State dependence in access to credit

Claudia Pigini, Andrea Presbitero and Alberto Zazzaro ()

Journal of Financial Stability, 2016, vol. 27, issue C, 17-34

Abstract: This paper investigates whether firms’ access to credit is characterized by state dependence. We introduce a first-order Markov model of credit restriction with sample selection that makes it possible to identify state dependence in presence of unobserved heterogeneity. The results, based on a representative sample of Italian firms, show that state dependence in access to credit is a statistically and economically significant phenomenon and that this is more prominent among medium-large firms.

Keywords: Credit constraints; State dependence; Discouraged borrowers; First-order Markov model (search for similar items in EconPapers)
JEL-codes: C33 C35 F33 F34 F35 (search for similar items in EconPapers)
Date: 2016
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (19)

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Related works:
Working Paper: State Dependence in Access to Credit (2014)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:finsta:v:27:y:2016:i:c:p:17-34

DOI: 10.1016/j.jfs.2016.08.003

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