 Contractual relations in agricultural credit markets: a hedonic pricing approach with application to PolandMartin Petrick and Laure Latruffe Post-Print from HAL Abstract: We present a micro-econometric analysis of agricultural credit market outcomes in Poland that investigates the relationship between contractual arrangements and interest rates. An innovative theoretical framework based on a hedonic market model is developed. We interpret the factors that influence interest rates as 'quality' components of the credit contract. Using unique data allows us to consider both nominal interest rates and additional bank fees. The results show that banks have preferences for particularly liquid types of collateral, whereas they care little about the purpose for which the loan is used. Furthermore, the analysis allows quantification of the effects of socioeconomic attributes of farmers, different lending sources and government subsidies on interest rates. The latter effect is small compared with the officially declared reduction of the nominal interest rate. A simulation shows that enabling more borrowers to use liquid forms of collateral implies lower rates than those obtained by participating in the subsidy programme. Keywords: AGRICULTURAL FINANCE; CREDIT POLICY; HEDONIC REGRESSION; MICRO-ECONOMETRICS; pologne; europe (search for similar items in EconPapers) Published in Journal of Agricultural Economics, 2006, 57 (1), pp.49-63. ⟨10.1111/j.1477-9552.2006.00031.x⟩ There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it. Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-02392191 DOI: 10.1111/j.1477-9552.2006.00031.x Access Statistics for this paper More papers in Post-Print from HAL |
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