Direct elicitation of credit constraints: Conceptual and practical issues with an empirical application

Stephen R. Boucher, Catherine Guirkinger () and Carolina Trivelli

No 19272, 2005 Annual meeting, July 24-27, Providence, RI from American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association)

Abstract: The "direct" method of evaluating the impact of credit market imperfections on economic performance first attempts to directly measure whether or not a household or firm is credit rationed and then evaluates the impact of the constraint by via a second stage estimation that provides a household-specific measure of the shadow value of capital. We evaluate this direct approach in three steps. First, we present a simple model that allows us to carefully define different notions of credit rationing- via quantity, transaction costs, and risk. Second, we discuss empirical (survey) strategies for classifying the "rationing mechanism" for each household. Finally, we demonstrate the importance of the classification strategy by estimating the impact of household wealth on the probability of non-price rationing for a sample of farm households in Peru.

Keywords: Financial; Economics (search for similar items in EconPapers)
Pages: 37
Date: 2005
References: Add references at CitEc
Citations: View citations in EconPapers (10)

Downloads: (external link)
https://ageconsearch.umn.edu/record/19272/files/sp05bo06.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ags:aaea05:19272

DOI: 10.22004/ag.econ.19272

Access Statistics for this paper

More papers in 2005 Annual meeting, July 24-27, Providence, RI from American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association) Contact information at EDIRC.
Bibliographic data for series maintained by AgEcon Search ().