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The Demand and Supply of Credit for Households

[Zeitschriftenartikel]

Bali Swain, Ranjula

Zitationshinweis

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Abstract The demand and supply of credit in the rural credit markets is investigated in this paper using household data from India. The aim is to study the effects of household, farm productive characteristics and the policy variables on the demand and supply of credit. A type 3 Tobit model is estimated which corrects for sample selection and endogeniety bias. In addition, a generalised Double Hurdle model is estimated where the information on the household’s access to credit is included to estimate the demand and supply of credit. The results suggest that the size of the operational holdings, net-wealth, dependency ratio, educational level of the household and the wages and output prices are important determinants of the demand and supply of credit for farm households. The Double Hurdle model confirms that the ‘size of land owned’ plays a crucial role in whether the household has access to a loan or not.
Sprache Dokument Englisch
Publikationsjahr 2008
Seitenangabe S. 2681-2692
Zeitschriftentitel Applied Economics, 39 (2008) 21
DOI http://dx.doi.org/10.1080/00036840600749516
Status Postprint; begutachtet (peer reviewed)
Lizenz PEER Licence Agreement (applicable only to documents from PEER project)
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