Endowments and credit market performance: An econometric exploration of non-price rationing mechanisms in rural credit markets in Peru
نویسنده
چکیده
This paper provides an empirical examination of the frequency and determinants of two forms of non-price rationing in rural credit markets in northern Peru. Quantity rationing is the conventional form of non-price rationing whereby a household with positive demand for credit is denied access. Risk rationing, in contrast, occurs when a household voluntarily withdraws from the credit market for fear of losing collateral even though it has an expected income enhancing investment. A multinomial logit framework is used to systematically explore how farmers’ endowments are related to the observed credit market rationing outcome. Maps of the probabilities of each rationing regime are developed in endowment space and show that the structure of the post-liberalization credit market in Peru is significantly biased against low wealth farm households.
منابع مشابه
State Contraction and Credit Market Development in Rural Peru
Financial liberalization policies have significantly altered the structure of rural credit markets and the terms of household access to them throughout Latin America. This paper has two main objectives. First, it uses household survey data from northern Peru to fill an empirical void by presenting a detailed description of the terms of formal and informal credit contracts and the frequency of n...
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