Credit Access: Implications for Sole-Proprietor Household Production

Brian Briggeman, Charles Towe () and Mitchell J. Morehart

No 9707, 2007 Annual Meeting, July 29-August 1, 2007, Portland, Oregon from American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association)

Abstract: The objective of this study is to explain the determinants of farm and non-farm sole proprietorship households access to credit as well as the extent their credit constraints impact their value of production. A propensity, kernel-based matching estimator was employed to provide unbiased estimates of the production impacts of being denied credit. Prior research efforts have used inferior methods, including the two-stage Heckman estimator deal with estimation issues (selection bias and endogeneity) inherent in determining impacts of credit access and use. Results suggest that credit constrained sole-proprietorships, farm and non-farm, have a significantly lower value of production, but this drop in production, when aggregated to a national level, is small.

Keywords: Agricultural; Finance (search for similar items in EconPapers)
Pages: 33
Date: 2007
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Persistent link: https://EconPapers.repec.org/RePEc:ags:aaea07:9707

DOI: 10.22004/ag.econ.9707

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