Measuring Credit Rationing in Rural Financial Markets: A Portuguese Case Study
MetadataShow full item record
Publisher:Ohio State University. Department of Agricultural, Environmental, and Development Economics
Series/Report no.:Ohio State University. Department of Agricultural Economics and Rural Sociology. ESO (Economics and Sociology Occasional Paper). No. 1742
This paper analyzes an appropriate methodology for studying discriminatory credit rationing in rural credit programs with fixed interest rates. The paper demonstrates that in order to analyze credit discrimination one should have a well-defined loan demand and supply model. The criteria by which Joan applications are accepted or rejected should be explicitly incorporated into the analysis. The paper also demonstrates that the estimation or the model should consider not only data on loans granted but also on loans rejected. Finally, the empirical analysis implemented in this study shows that this loan demand and supply model is quite adequate for analyzing the discriminatory policies followed for a rural credit program in Portugal after the 1974 Revolution.
Rights:This item may be protected by copyright, and is made available here for research and educational purposes. The user is responsible for making a final determination of copyright status. If copyright protection applies, permission must be obtained from the copyright holder to reuse, publish, or reproduce the object beyond the bounds of Fair Use or other exemptions to the law.
Items in Knowledge Bank are protected by copyright, with all rights reserved, unless otherwise indicated.