IDEAS home Printed from https://ideas.repec.org/p/ags/aaea05/19272.html
   My bibliography  Save this paper

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

Author

Listed:
  • Boucher, Stephen R.
  • Guirkinger, Catherine
  • Trivelli, Carolina

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.

Suggested Citation

  • Boucher, Stephen R. & Guirkinger, Catherine & Trivelli, Carolina, 2005. "Direct elicitation of credit constraints: Conceptual and practical issues with an empirical application," 2005 Annual meeting, July 24-27, Providence, RI 19272, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    • Handle: RePEc:ags:aaea05:19272
    DOI: 10.22004/ag.econ.19272
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/19272/files/sp05bo06.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.19272?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Abbas Ali Chandio & Fayyaz Ahmad & Ghulam Raza Sargani & Asad Amin & Martinson Ankrah Twumasi, 2022. "Analyzing the effective role of formal credit and technological development for rice cultivation," Asia-Pacific Journal of Regional Science, Springer, vol. 6(2), pages 683-711, June.
    2. Guirkinger, Catherine, 2008. "Understanding the Coexistence of Formal and Informal Credit Markets in Piura, Peru," World Development, Elsevier, vol. 36(8), pages 1436-1452, August.
    3. Dower, Paul & Potamites, Elizabeth, 2005. "Signaling Credit-Worthiness: Land Titles, Banking Practices and Access to Formal Credit in Indonesia," 2005 Annual meeting, July 24-27, Providence, RI 19120, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    4. Daniel Domeher & Raymond Abdulai & Eric Yeboah, 2016. "Secure property right as a determinant of SME’s access to formal credit in Ghana: dynamics between Micro-finance Institutions and Universal Banks," Journal of Property Research, Taylor & Francis Journals, vol. 33(2), pages 162-188, April.
    5. Phinseng Channgakham, 2006. "The effects of a fertilizer loan on dry-season rice cultivated areas in Laos," Economics Bulletin, AccessEcon, vol. 15(12), pages 1-8.
    6. Paul Castañeda Dower & Elizabeth Potamites, 2014. "Signalling Creditworthiness: Land Titles, Banking Practices, and Formal Credit In Indonesia," Bulletin of Indonesian Economic Studies, Taylor & Francis Journals, vol. 50(3), pages 435-459, December.
    7. repec:ebl:ecbull:v:15:y:2006:i:12:p:1-8 is not listed on IDEAS
    8. Daniel Domeher & Raymond T., Abdulai, 2012. "Land registration and access to SME credit: preliminary findings," ERES eres2012_002, European Real Estate Society (ERES).
    9. Hazel Jean L. Malapit, 2012. "Are Women More Likely to be Credit Constrained? Evidence from Low-Income Urban Households in the Philippines," Feminist Economics, Taylor & Francis Journals, vol. 18(3), pages 81-108, July.
    10. Akram, Waqar & Hussain, Zakir, 2008. "Agricultural credit constraints and borrowing behavior of farmers in rural Punjab," MPRA Paper 31531, University Library of Munich, Germany.

    More about this item

    Keywords

    Financial Economics;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:aaea05:19272. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/aaeaaea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.